A skills agreement means your employer pays for your training and you agree to stay for up to 5 years – otherwise you pay back the costs. It is important to know when to sign it and when to refuse it.
A skills agreement means your employer pays for your training and you agree to stay for up to 5 years – otherwise you pay back the costs. It is important to know when to sign it and when to refuse it.
Not sure if your agreement is OK? We will be happy to check your agreement and check that your employer has complied with the law.
A qualification agreement is an arrangement between an employee and an employer that provides for the increase or deepening of qualifications and the associated obligations. If you are to receive further training in the course of your employment, it is therefore necessary to first distinguish whether, in the words of the Labour Code, the qualification is a “deepening” or an “increase” of the qualification.
Upskilling means adding to something you already know and use in your work. So you are not gaining a new qualification, rather you are maintaining and adding to your knowledge.
For example, when a payroll accountant takes a training course on new accounting regulations or a travel agent who is fluent in Spanish takes an advanced Spanish course to get closer to native speakers in communication. Your employer may impose such training, but will usually pay for the cost. You cannot enter into a qualifying agreement in this case.
Upskilling, on the other hand, means that you learn something completely new on top of what you do at work. That is, either when you acquire a completely new skill that you did not have before or when you advance to the next level of your education. In the words of the law, this is study, education, training, or any other form of preparation to attain a higher level of education if it is consistent with the employer’s need.
For example, when a clerk at work graduates from college to take over her supervisor’s job. Such training is no longer a duty of the employee and cannot be mandated by the employer. On the other hand,it may require the employee to pledge allegiance and enter into the qualification agreement just mentioned inexchange for funding such education.
It follows from Section 234 of the Labour Code that a qualification agreement may be concluded regardless of the amount of the employer’s anticipated costs for the employee’s qualification.
On the other hand, a qualification agreement for the improvement of qualifications can only be concluded if the estimated costs amount to at least CZK 75,000. If the cost of the upskilling is lower, such an agreement cannot be concluded.
The subject of the qualification agreement is the employer’s commitment to reimburse you for the cost of the upskilling in exchange for you remaining employed by the employer for an agreed period of time, but no longer than 5 years. If you do not keep the commitment, you will have to pay the cost of the upgrade.
Before signing a qualification agreement, make sure it clearly describes what training you are to be paid for, how long the agreement will tie you in for and what costs and how much you might have to pay.
A qualifying agreement can mean a commitment of several years and high penalties. If you are unsure whether it is set up fairly, have it checked by a solicitor – we can often spot mistakes that can cost you tens of thousands of pounds.
Tip: How an employer should correctly determine the wage, what are his legal obligations regarding remuneration, which benefits are beneficial for the employee and the employer and what the employer can deduct from the wage. This is the focus of our separate article.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
If you decide to enter into an agreement, you need to be careful about the specific counting of the time you cannot leave your employer. This will only start from the time you upgrade your qualifications and will not include parental leave. The qualifying agreement must be in writing.
Apart from when you end the employment relationship yourself, you will also be liable to reimburse your employer for the cost of your training if you are dismissed for breach of duty.
You will also have to pay if the employment relationship is terminated by agreement. The only exceptions to this rule are if the reason for termination is for organisational reasons on the employer’s side and certain health reasons on your side. Only then would you not have to pay the costs.
It is in these situations that most disputes arise. Cases where the employer claims compensation unjustifiably are no exception. A quick legal consultation can save you from paying unnecessarily.
We handled the case of a client who entered into a qualifying agreement with his employer in connection with his college education. The employer paid his tuition and a portion of his wages while he studied, and the client agreed to remain with the company for 4 years.
However, after the client completed his studies, the company reorganised and his position was abolished. The employer terminated his employment for organisational reasons. Subsequently, the employer nevertheless demanded reimbursement of his education costs of over CZK 180,000.
The client contacted us at a time when he already had a demand for reimbursement. After reviewing the contract and the circumstances, we concluded that the employer’s claim was not justified. In fact, the law clearly provides an exception in these situations – if the employment relationship is terminated for organizational reasons on the part of the employer, the employee is not obliged to reimburse.
Such situations are not exceptional. Employers sometimes claim automatically without taking into account the statutory exceptions. It is therefore worthwhile to have any such claim legally checked – the difference can be in the tens or hundreds of thousands of crowns.
Your employer cannot claim reimbursement even if you have not used your newly acquired knowledge of your own volition for at least six months in the last year.
Of course, the qualification agreement makes sense. The employer invests money to “upgrade” his employee; the employee, on the other hand, increases his value on the labour market.
Logically, the employer wants to protect its investment, but it is up to you to consider the extent of such protection so that completing the qualification course also has the expected benefits for you.
The normal training for an employee is to be trained at the time they start work. He or she will learn how to use new programs, such as graphics, accounting or filing services, and other employees will introduce him or her to the equipment with which he or she will come into contact on a daily basis.
Although the training involves a certain amount of time for the employee and quite possibly financial demands for the employer, it is not, according to the law, a deepening or improvement of qualifications. It is a duty of the employer and, from the employee’s point of view, it is the normal performance of work.
Tip: Employee Share Ownership Plan(ESOP) is still relatively unknown in the Czech Republic. Let’s take a look at what are the advantages and disadvantages of introducing such a program and why you should consider it in your company. We have devoted a separate article to this topic.
A qualification agreement is a tool for your employer to protect the investment in your education. It obliges you to stay in employment for up to 5 years or repay the cost. The key is to distinguish whether it is a qualification upgrade, check the terms of the agreement carefully and know the situations where you do not have to pay the reimbursement. If in doubt, legal advice is worthwhile as a poorly set up agreement can mean a high financial risk.
No, signing is voluntary. But without it, your employer may not pay for your education.
Not always. Compensation tends to be pro-rated according to the amount of time you worked after your studies.
This period is not normally included in the commitment.
Yes, unless there is an exception in the agreement or the law.
Maximum 5 years.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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