scholarship policy

Jocelyn · January 2002

We recently got word that we will be receiving grant money for entry level scholarships and career ladder training funds. We'd like to have a committment from receiving employees that they return to work for us for X amount of time. Does anyone have a policy that addresses this?

Margaret Morford · January 2002

Have them sign a contract that values this training at $X, which they must pay back in full if they leave the company within X years of completeing the training. Do not pro rate it. They stay the full amount of time specified or they owe the full amount back. This will insure they stay the whole time.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Jocelyn · January 2002

Thanks for the info.

KarenL · January 2002

You may want to be careful with requirements that could negate any at-will employment policy you already have. You don't want to be "stuck" with an employee who may consider the scholarship plan a commitment on your part to keep him/her employed. A clause that gives the employer the right to terminate at any time and forgive the scholarship will keep your rights intact.

Johana · April 2002

Could you be more specific about that?

Don D · April 2002

Karen posted that back in January. In case she doesn't realize you asked her the additional question, I'll try. I think what she meant is that if your state has an "At Will Employment Relationship" law, meaning either you or the employee can sever the relationship "at will", without cause having to be established, then you want to be careful about implying that you intend to keep an employee around for three years (for example) after he completes a field of study. You should state your requirement in writing that the training is valued at X and if the employee leaves voluntarily within X, he must pay that back to the company. Then state that "This in no way restricts the employer's rights under the At-Will employment relationship in the state of X. This will serve notice that if he quits, he owes it; but, would preserve your right to fire him "At Will". Then there's no chance of a perceived or implied contract to keep him X number of years. But, I don't think you'd be able to recover the value of the training if you fired him, nor would you want to.

scholarship policy

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