Manojkamble
Sr. Hr Executive
+1 Other

Thread Started by #varshasakre

Dear All, I need a suggestion on the below case. We are a export company.
We have a Sales & Business Devlpt - Sr. Executive, who has completed 1.5 yrs in the company. Now he has resigned because of salary issue. He is drawing 31,000/month, which is hindering his personal life as he is looking out for marriage and many proposals are being rejected because of low salary. He has found a new job in his father's company now.
However, the management had taken him to Indonesia trip to train him on customer interaction & other. Also, when he joined, the company did not had this position. The management created this position only after his several requests for the job. The management thinks that they have invested on him for the training. Hence, want to claim the flight & hotel charges on him.
The employee thinks that the Indonesia trip was on the instructions of MD but not on his request. So he is not liable for it.
Is it right to claim training expenses from an employee.
17th August 2017 From India, Belgaum
Dear Varsha,
Please let us know if employee had signed any bond / legal contract with the organisation before his is been sent for training with clause of recovery of amount spent on his training. If no legal document which is been accepted by the employee is in place then you cannot recover the training amount from the employee.
17th August 2017
Training expenses are recovered in F&F subject to certain conditions.
The terms and conditions of recovery of expenses towards any training (domestic / international) must be conveyed in advance to the employee. Such clauses need to be mentioned in the appointment letter.
Even before the commencement of such training the employee should be made aware of the terms.The acceptance of those terms must be taken in writing from the employee.
If your employee was not informed of the terms, then he is within his rights to deny paying them.
The employee had made certain requests and the management accepted it. The management creating a position for him on his request has no bearing on the current situation.
The Company has definitely invested in him. But every employee has a right to seek growth opportunities.
Hence a company need to formulate a policy wherein they have a return on investment of the training and at the same time they do not hinder the employee growth and bind him to the company.
For a training of e.g 30000/- one cannot expect the employee to stay for years together.
So the amount spent on training, the minimum period the employee need to stay and the recovery criteria needs to be formulated accordingly.
But they key here is communication from employer and acceptance by employee in advance.
The general recovery clauses are:
e.g : in case of training ( if an employee exits within a year , then recovery will be done pro rata)
That is if an employee leaves within 8 months after training, then only 4 months expenses should be recovered. Some companies recover 50% or even the entire amount. It varies from company to company.
Similar recovery is also done if the company buys the notice period of the employee. Here also it is mentioned that the employee needs to complete a minimum tenure of one a year in the company else the entire amount is recovered.
17th August 2017 From India, Mumbai
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