Disputes over training costs and the employer’s burden of proof
In our previous two articles on Training cost reimbursement for employers, TNTP explored the overview of training relationships in employment and the issue of training cost reimbursement. In this final article of the series, TNTP will examine disputes regarding training costs and clarify the employer’s burden of proof when seeking reimbursement from employees. Specifically as follows:
1. Disputes over training costs between employers and employees
Disputes over training costs are one of the most common labor disputes between employees and employers. Such disputes arise when employers pay for employee training but the employment ends before the agreed-upon commitment period or when both parties cannot reach an agreement on the reimbursement of training costs. Below are some common disputes related to this issue.
1.1. Disputes over the legality of training contracts
Disputes over the legality of training contracts typically arise when employers request reimbursement of training costs in cases where employees resign before their committed term but the contract lacks mandatory provisions such as post-training work duration, specific costs, and rights and obligations of each party. Contract disputes frequently originate from those contracts are drafted without sufficient detail, lack proper legal foundation or fail to follow required legal procedures. In cases where a contract is determined to be non-compliant with legal requirements, employers will encounter significant challenges when seeking reimbursement for training expenses. Conversely, if the contract is drafted rigorously and complies with the law, employers can prevent risks and protect their interests.
To ensure compliance and mitigate potential risks, it is advisable for employers to consult with legal professionals during the preparation of training and labor contracts, complying strictly with Article 62 of the Labor Code 2019. Additionally, employers should maintain thorough records of training expenses and invoices as evidence in case of disputes.
1.2. Disputes over reimbursable training costs
Disputes over reimbursable training costs occur when employees terminate employment before their committed period and employers request training cost reimbursement but both parties disagree on the amount, legal basis or reimbursement conditions. Such disputes primarily focus on evaluating the legitimacy of training-related expenses, examining supporting documentation like receipts, invoices, etc., and assessing whether an employee’s resignation violates the agreement. Such disputes typically arise from training contracts that lack clear agreements regarding training costs, committed work duration and methods for calculating reimbursable expenses. When contracts are clear, employers have an advantage in requesting employees to reimburse invested costs. However, if the contract contains unclear content or lacks these agreements, the employer may face significant disadvantages and sometimes even losing the ability to recover their training costs from the employee.
To minimize risks, employers should create separate training contracts that include all legally required terms. Such contracts must be complemented by a detailed list of specific training expenses, valid invoices and proper documentation to establish solid legal grounds in case of disputes.
1.3. Disputes over training cost reimbursement when employees terminate contracts early due to employer’s fault
Disputes when employees terminate employment before the committed period due to the employer’s fault typically arise when employees unilaterally terminate their labor contracts according to Article 35 of the Labor Code 2019. These disputes originate from employers’ violations of basic labor obligations. The key issue is determining employer fault – such as delayed wage payments, inadequate working conditions or workplace harassment and discrimination. Employers face disadvantages if they fail to address internal violations promptly or lack documentation proving they fulfilled their obligations. Employees may request compensation, back pay or recognition of legal termination without prior notice and employers have no right to demand reimbursement of training costs they have invested.
To effectively mitigate potential risks, employers must strictly comply with regulations regarding employee rights; establish clear internal handling procedures; take swift action against workplace harassment, discrimination and maintain comprehensive documentation of employment, disciplinary proceedings to ensure a solid legal foundation for potential disputes.
1.4. Disputes regarding training cost reimbursement in cases where the employer unilaterally terminates the contract with the employee
This dispute occurs when an employee’s labor contract is unilaterally terminated and the employee claims they have no obligation to reimburse training costs since they did not violate their committed working period and still wished to work, however the employer unilaterally terminated the labor relationship. In cases where the employer requests the employee to reimburse training costs upon unilateral termination of the contract, the emplyer must demonstrate three key elements: the training agreement explicitly outlines reimbursement requirements for such circumstances; the termination was conducted in accordance with legal requirements and there is verifiable documentation confirming the employer’s payment of these training expenses. Without such proof, the court may reject the reimbursement request for lack of supporting evidence.
To limit risks, employers should create clear and comprehensive training contracts regarding situations that give rise to reimbursement obligations, comply with proper legal procedures when terminating labor contracts, keep detailed records of training costs and seek professional legal guidance prior to executing any employment contract terminations.
2. Employer’s burden of proof when requesting reimbursement of training costs
When employers request training cost reimbursement from employees who breach their commitments, they must prove their request is reasonable and lawful. This obligation follows the principle that “the party making a claim must prove it” as established in the Civil Procedure Code 2015 and Labor Code 2019. The following elements must be proven by employers:
– Proving the existence of a legal training contract
The employer must provide a written training contract signed by both parties before starting the training relationship. The contract must include all legally required elements: the training program, location and duration of training, total training costs paid by the employer, the employee’s committed work period after training completion and terms for cost reimbursement if the employee violates their commitment. In cases where there is no written training contract or the contract does not specifically stipulate terms for training cost reimbursement, the employee is only obligated to reimburse training costs if they unilaterally terminate the labor contract illegally. In all other situations, the employee has no obligation to reimburse any costs even if they were paid by the employer during the training process. Thus, establishing a comprehensive and clear contract at the start of the training relationship serves as a crucial legal foundation to protect employer rights when disputes arise.
– Proving training costs paid by the employer
Employers must provide valid documentation to prove actual training expenses paid to employees when requesting reimbursement. Required documents include invoices and receipts for tuition, training fees; contracts and payment confirmations from training institutions; documentation of travel and accommodation expenses (if any) and payroll records showing wages paid during the training period (if specified in the training contract). In cases where employers cannot present valid documentation or provide unclear documents that do not comply with accounting regulations, the request for training cost reimbursement may be rejected by the court due to insufficient evidence of actual expenses. Therefore, maintaining valid financial documentation is key to protecting employers’ rights in disputes related to training costs.
– Proving employee’s violation of post-training work commitment period
The employer must prove two things: the employee terminated the labor contract before the agreed-upon period specified in the training contract and the employee does not fall under cases exempt from training cost reimbursement such as resignation due to unpaid wages or abusive treatment by the employer. Additionally, the employer must prove that they have fully fulfilled their obligations under the training contract, including paying training costs and providing learning conditions as committed but the employee still resigned before the committed period without legal basis. If the employer fails to prove that the employee violated the commitment and does not fall under cases exempt from training cost reimbursement, the court may recognize that the employee has no obligation to reimburse training costs according to law. Therefore, to protect employer’s interests, the employer needs to provide complete documentation proving that the employee has violated the post-training work commitment period.
Disputes over training cost reimbursement commonly arise from three main issues: conflicts in training contracts, disagreements about reimbursement calculations and early termination of employment before the committed period. To avoid risks, employees should carefully review the training contract before signing. Employers must strictly follow legal requirements and provide all valid documentation when requesting training cost reimbursement.
Sincerely,
