Employee contract

Can an employer create a contract that states that employee must work for the company for a minimum of one year. If he or she breaks the contract she will be required to pay a sum.

This employee is being trained and the company is paying for her training. I guess they don't want to take the risk of losing her and wasting all that money on her after she has completed training.

Is this legal? . Is there any other way to go about this?


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  • You will want to check your state's employment laws; but generally, yes, you can make such a contract. I know of police departments that require new hires to reimburse them for the cost of sending the new employee to the academy, if the new officer leaves within a designated period of time. Those departments don't want to invest large sums of money in training a new officer, just to have that officer go to work at another department.

    As part of our tuition reimbursement program, employees agree to remain employed by the organization for 12 months, or they must pay back the tuition reimbursed by the employer in the prior 12 months.
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