Recurrent Training Contracts

jfletcher

[font size="1" color="#FF0000"]LAST EDITED ON 09-22-04 AT 02:12PM (CST)[/font][br][br]Here is the deal. We have group of employees (pilots) that when they come aboard they sign an offer letter with one of the conditions in it that they will sign a prommisory note to reimburse the company for training to upgrade their type rating (type of plane eligible to fly) if they leave within 12 months of the training. It is pro-rated out based on length of service and expires after 12 months. The President now wants a training/prommisory note signed each time they train for a higher type rating. It is a large expense, sometimes over $11K.
Can we do this or should this be considered as the normal cost of doing business once they are in the door. EX. If we train a pilot of the next higher rating they could immediately leave once done for another job at a commercial carrier and we would be out $11K. Any thoughts would be greatly appreciated.

System

Is the training voluntary? If the training is mandatory, I would say you cannot require reimbursement unless it's in the original conditional offer letter.

If the training is voluntary, then I believe you can have a policy that requires re-payment. Most entities who offer tuition reimbursement programs have a pay back policy if the employee leaves within a certain time frame after getting the reimbursement.

JMHO.

jfletcher

It is voluntary in the sense that if they want to progress to bigger and better type planes, and more pay, they have to be trained and certified. Unfortunately, no tuition reimbursement program here yet...one of my projects for the future...only here 4 months now. The offer letter states that the employee will consent to signing the training/prommisory note to reimburse if they leave before one year, proportional to the time they have been there during that year...1/12 less for every month here.
Thanks for the info...hadn't thought about the tuition avenue.