Introduction
Employers regularly invest in the development of their staff, for example by reimbursing the costs of education, courses, or training. But what happens to those educational expenses if an employee resigns of their own accord? Can the employer then recover these costs? The law sets out clear rules on this matter, and not every educational program automatically results in an obligation to repay. This blog explains when repayment is required and what the conditions are for a valid educational agreement.
Reimbursing Tuition Costs: Not Always Required
A common misconception is that an employee must always reimburse educational expenses upon leaving the company. However, this is only the case if two conditions are met:
- The training was not mandatory.
- A clear and legally binding study agreement has been entered into.
Without such an agreement, or if the training is deemed mandatory, the right to reimbursement is forfeited.
Mandatory training courses: no obligation to reimburse
Under the law, an employee is not required to reimburse costs for training that is mandatory for performing the job. This includes:
- Training programs that are required by law, such as those for professional licensure.
- Training required to perform the work properly and safely.
Examples include professional training for lawyers or a course on working with new business systems. In such cases, the employer is fully responsible for covering the cost of training. Even if the parties have agreed otherwise, the employee can rely on this provision.
Study Agreement: Written Agreements Are Required
If a training program is not mandatory, an employer may only reimburse training costs if a written training agreement has been drawn up. This agreement must meet a number of legal requirements:
- Duration: The period during which a refund may be requested must be clearly specified.
- Sliding scale: the longer an employee remains with the company after completing their studies, the less they have to repay. For example: 100% if they leave within one year, 50% after two years, and so on.
If any of these elements are missing, the court may rule that the tuition reimbursement clause is invalid. In that case, the employee is not required to repay any amount, even if he leaves shortly after completing the training.
Importance for Employees and Employers
It is important for employees to check the following carefully in advance:
- Was the training required to perform the job?
- Has a written study agreement been signed?
- Am I still eligible for the reimbursement program, or has the period already expired?
For employers, drafting a correct and legally sound study agreement prevents misunderstandings and legal proceedings. In practice, it is common for provisions regarding study costs to be declared invalid because they do not meet the legal requirements.
Conclusion
Reimbursement of tuition costs applies only to non-mandatory educational programs and requires a proper written agreement. Employers must carefully draft their tuition reimbursement agreements, and employees would be wise to understand their rights before agreeing to reimbursement. Clarity up front prevents problems later on.
This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and policies—with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn’s page.
Arbeidsadvocaat.nl is happy to help you if you have any questions about educational expenses. Please feel free to contact us .
April 2025