How to Write an Employee Training Contract or Agreement

Employers that provide training and development opportunities for employees receive high marks and are often known as employers of choice because they invest in their employees' future. When employees take advantage of skills training and professional development benefits, employers can benefit from improved job satisfaction, employee performances and retention rates.

In cases of employer-provided training, human resources best practices encourage a mutual training agreement, in writing, between the employer and employee pertaining to learning objectives, outcomes, career path development and conditions for reimbursement. An employee continuing education agreement can be beneficial for both employer and employee.

1. Meet with the Employee to Discuss Training Options

Schedule a meeting with the employee to discuss training options. Review the employee's personnel file and performance evaluations. Explain the company policy on providing training or professional development. Jot down the mutually agreed-upon goals for employee training.

2. Review Materials for Suitable Training Programs

Read all materials for suitable training and professional development programs. Ensure the employee's work record and goals are a sufficient foundation for enrollment in an intensive training program or university courses.

3. Research Employee Continuing Education Agreements

Conduct research for guidance on how to structure a continuing education or training agreement where the employer will pay for the training program or university tuition. Search online resources for sample agreements and contracts between human resources and employees.

4. Draft a Basic Employment Training Contract

Draft a basic employment training contract that contains the employee's professional goals identified during the meeting and in the most recent performance evaluation. Describe the type of training and its learning objectives. If the employee is enrolling in university courses, list the courses, credit hours and subject matter. Include the length of training or the number of semesters the employee is attending a university.

5. State the Desired Outcomes of the Training

State the desired outcomes for the employee's training. For intensive training programs, require the employee to submit proof of completion. For university courses, the desired outcome could be a minimum grade, such as a B. Include conditions under which the employer will discontinue the training subsidy or when the employee is required to reimburse the company, such as failure to complete the coursework.

6. Address Who Will be Responsible for the Taxes

Access the Internal Revenue Service website and search for information on educational assistance as taxable income. Insert a statement in the training agreement that indicates which party is responsible for tax consequences as a result of educational assistance.

7. Calculate Length of Employment Needed

Calculate the length of employment your employee must complete to justify the length of the training or educational program. In some employer-employee training agreements, the employee who benefits from employer-subsidized training must remain in the company's employ for a minimum amount of time. Include terms and conditions to which the employee is subject if she resigns from the company before fulfilling the terms of the employee continuing education agreement.

8. Finalize the Employment Training Contract

Finalize the continuing education or training agreement and meet with the employee again to discuss the conditions of employer-provided training. Obtain the employee's signature and give her a copy of the training agreement. Place another copy in the employee's personnel file.

  1. HR World: The Pros and Cons of Providing Employee Continuing Education
  2. FindLaw: Tuition Repayment Contract Enforced by Employer
  3. Internal Revenue Service: Employer-Provided Educational Assistance
  4. U.S. Department of Labor: Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (ATAA) Services and Benefits

Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. In addition, she earned both the SHRM-Senior Certified Professional (SHRM-SCP), through the Society for Human Resource Management, and certification as athe Senior Professional Human Resources (SPHR) through the Human Resources Certification Institute. Ruth also is certified as a facilitator for the Center for Creative Leadership Benchmarks 360 Assessment Suite, and is a Logical Operations Modern Classroom Certified Trainer . Ruth resides in North Carolina and works from her office in the nation's capital, Washington, D.C.

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