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Home/Templates/Hiring agreements & offer letters/Training repayment agreement
Signable template

Training repayment agreement

Records employer-funded training and the employee's commitment to repay a pro-rated share of the cost if they leave shortly after it ends. Use it to make the terms transparent before the training starts.

  • Made forEmployers
  • Reading time~3 min
  • What's includedFillable fields, signature blocks, and e-signature delivery through Diiirect.
Use this templateSign in or create a free account to customize and send for e-signature.

The template

This agreement records the company's decision to fund a training program for an employee, and the employee's commitment to repay part of that cost if the employment ends shortly after the training. Its purpose is to make the investment and the repayment terms fully transparent before the training begins.

1. The training

Company name (the "Company") will fund the following training for Employee full name (the "Employee"): Training program description. The expected completion date is Expected completion date.

This agreement applies only to the optional, career-building training described above. Training the Company requires for the Employee's current duties is funded without any repayment commitment and sits outside this agreement.

2. Company funding

  1. The Company will pay training costs up to Total training cost, covering enrollment fees, required materials, and related expenses approved in advance.
  2. Costs above that amount require the Company's prior written approval; otherwise they are the Employee's own.
  3. Time spent in required training sessions is treated as working time under the Company's normal policies. Where sessions fall outside normal working hours, the Employee and their manager agree schedule adjustments in advance so the training does not create an unpaid overload.
  4. The Employee will make reasonable efforts to attend and complete the program. If the Employee abandons it without a documented reason, the Company may treat the costs already paid as repayable under section 3, calculated as if the training had ended on the abandonment date.

3. Repayment commitment

  1. If the Employee resigns, or is dismissed for documented misconduct, within Repayment period after the training ends, the Employee repays a pro-rated share of the amount the Company actually paid.
  2. The repayable share decreases in equal monthly steps over the repayment period and reaches zero at its end. The formula is: amount actually paid, multiplied by the months remaining in the period at the last day of employment, divided by the total months in the period.
  3. Partial months count in the Employee's favor: a started month of completed service is treated as a full month served.
  4. The repayable amount never exceeds what the Company actually paid under this agreement, and no interest, penalty, or administration charge is added to it.

4. When repayment does not apply

No repayment is owed if any of the following happens:

  • the Company ends the employment for any reason other than documented misconduct, including redundancy or restructuring;
  • the Company cancels the training or changes it materially after this agreement is signed;
  • the Employee cannot complete the training or the repayment period for documented health reasons;
  • the parties agree in writing to waive or reduce the repayment; or
  • the Employee remains employed through the full repayment period.

5. How repayment is made

  1. Any amount owed is invoiced to the Employee after the last day of employment, with a reasonable installment schedule offered on request.
  2. A deduction from final pay may be used only where the Employee has separately authorized it in writing and the deduction is otherwise permitted.
  3. The Company will provide, on request, a statement showing the amount actually paid for the training and the calculation of the repayable share.
  4. If immediate repayment would cause genuine hardship, the Employee may ask for a longer schedule and the Company will consider the request reasonably.

6. Nature of this agreement

This agreement covers only the training funding described above. It does not change the Employee's role, compensation, or the terms on which the employment may end, and it does not oblige the Employee to remain employed for any period. Signing before the training starts is a condition of the Company's funding. Any certification earned belongs to the Employee, and course materials the Employee is licensed to keep remain theirs regardless of any repayment owed.

Signatures

Employee: ✍ Employee signature Date: Employee signature date

For the Company: ✍ Company signature Date: Company signature date

Highlighted fields are filled in when you customize and send this document on Diiirect.

Jurisdiction note

Whether an employer may recover training costs at all — and especially by deduction from final pay — is tightly regulated and in some places prohibited or limited to specific training types. Have local employment counsel review the repayment and deduction clauses before use.

Not legal advice

This template is provided for general informational purposes only and is not legal advice. Laws differ by jurisdiction and change over time — have a qualified professional review any document before you rely on it.

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