Conducting training activities is quite common in a workplace as companies would want to develop their employee’s skills further which is beneficial to the business. Companies offer a lot of different training programs such as leadership training, sales, compliance training, orientation for onboarding employees, and many more. Some of these are conducted internally usually spearheaded by the HR department and the department head. But there are some training programs that would need professionals who are not from the company. So hiring outside trainers is needed to ensure that an employee is properly trained and this would hopefully make a difference to the company itself. Employee training can cost money, although there is a budget set aside to conduct such activities, there are some unexpected training programs that can cost more than the budget they have allocated. Given that, some employers may wish to reclaim the money that they have invested into training an employee for example sending the employee to training events in case the employee decides to leave immediately after receiving the training.

3+ Training Costs Agreement Samples

To ensure that, a training costs agreement is executed between the employee and the employer. To know more about this, let us discuss this further below. And if need any help preparing this agreement, we’ve got a list of training costs agreement samples that are available for download on this page.

1. Training Costs Agreement

File Format
  • PDF

Size: 123 KB


2. Training Cost Repayment Agreement

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  • PDF

Size: 579 KB


3. Training Cost Reimbursement Agreement

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  • PDF

Size: 18 KB


4. Training Cost Repayment Agreement Sample

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  • PDF

Size: 80 KB


What Is a Training Costs Agreement?

In some cases, a training costs reimbursement or repayment is inserted as a clause in an employment contract but there are instances when the employer can opt to create an entirely new training costs agreement for their employee to sign. This is because there may be more to include in the document or certain information that must be further explained. That being said, a training costs agreement is a document that discusses a situation when an employee decides to leave or resign within a defined period of time, they must repay the training costs, or a proportion of it, that the employer has invested. Such agreement is executed because the company would want to make sure that an employee isn’t simply going to leave the company without being able to fully utilize the skills or knowledge that the employee has learned that is supposedly for company use.

How To Create a Training Costs Agreement

If a company wants to keep up with the latest trend and continue to grow, it must take its time to invest and train its employees. But it also has to make sure that any investment that it makes for its employee is protected. This is where a training costs agreement can help. This agreement will set out how much the training costs, who is providing the training, and who is responsible for paying for it in the first instance. Each training costs agreement is different from the rest, there are some instances when the company would require full repayment of the training they have provided or partial. Should you need to prepare a training costs agreement here are several tips to help you.

I. Contact Details

Details of both parties involved in the agreement must be written in the document. This includes their names, the employee’s designation, addresses, and contact information.

II. Information About the Training Provided

The agreement should include what training has been provided to the employee, what was being shouldered by the company, and how long did the training last.

III. Full or Partial Repayment

As mentioned, it is up to the company whether they would require full or partial repayment. This would actually depend on what kind of training program the employee is engaged in. The computation would involve several key factors, for example, if the employee is sent to train outside of the country and is being sponsored by another party also involved in the training, then there is a possibility that the company is shouldering a lesser amount than it initially should. In this case, the cost of the training is cut into a specific percentage.

IV. Validity of the Agreement

In most cases, an employee is required to stay in the company within the span of 3, 6, or 12 months once again this should depend on what kind of training has been provided and the costs of these training programs. Should the employee decide to leave the company within the validity will be penalized, hence he or she is required as agreed upon to pay the remaining balance of the cost indicated in the agreement.

V. Penalty Clause

After the training costs and validity has been provided, a penalty clause is then added to the agreement. It creates an obligation that imposes a detriment on a party in the event of their breach of contract.

VI. Restraint of Trade

Upon writing the agreement, make sure you use the right words as you do not want to sound like you are unreasonably preventing someone from changing jobs. That is why it should be carefully drafted to ensure it does not get challenged under this category.

VII. Non-Discriminatory

Another important factor to consider when creating this agreement is that you should not make it sound like your discriminating against your employee. So it is very important to understand the circumstances surrounding the employee before you are able to finalize the agreement.


What Is an Employment Contract?

This is a legal agreement between an employer and their employee which discusses the terms and conditions of the employment.

Can Employers Deduct the Training Costs from Your Salary?

They can, but both parties need to agree on it beforehand. Normally an agreement is exchanged between both parties so they can discuss the terms of the deduction.

Why are Contracts Important in Business?

Contracts are important because they protect both parties in case of a breach. This will also help understand the rights and obligations each party has under the agreement.

A training costs agreement must be properly drafted to ensure that you are not breaking any boundaries and you genuinely just want to only protect the investment, time, and effort you have made for your employee. To make it easier for your to prepare one, don’t forget to download our free templates above!



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