Can you recoup training costs from your employees?

by Adrian ClarkOct 8, 2021Human Resources, View All

Workplace investigations are a vital part of maintaining the integrity and fairness of any organisation. When issues arise, it’s important for businesses to act quickly, ensuring that they address concerns in a transparent and lawful manner. Different types of investigations are needed for different situations, each requiring a tailored approach to ensure fair outcomes for all involved. Below are some of the most common types of workplace investigations and when they should be used.

Misconduct Investigations
Misconduct investigations are necessary when an employee breaches company policies or behaves inappropriately. This might include theft, dishonesty, substance abuse in the workplace, or breaches of confidentiality. Misconduct can also cover actions that damage the company’s reputation or relationships with clients. It’s important to act quickly when dealing with misconduct to maintain workplace standards and protect the business from potential legal liabilities.

Harassment and Bullying Investigations
Investigations into harassment and bullying are crucial when employees report or experience inappropriate behaviour. Whether the issue is sexual harassment, racial harassment, or bullying, businesses have a duty to investigate and take action. These investigations must be handled with care, ensuring that both the complainant and the accused are treated fairly, and that the process remains confidential. Addressing such issues promptly not only protects employee wellbeing but also helps to maintain a respectful workplace culture.

Discrimination Investigations
Discrimination investigations come into play when employees feel they’ve been treated unfairly due to attributes such as race, gender, age, disability, or sexual orientation. These cases can be complex and require careful handling to ensure compliance with anti-discrimination laws in Australia. A thorough investigation is essential to ensure that all claims are properly examined, protecting the organisation from legal action and fostering an inclusive workplace.

Health and Safety Investigations
When a workplace incident or a near-miss occurs, a health and safety investigation is needed. These investigations help to determine whether existing safety measures were followed and if further action is required to prevent future incidents. Compliance with workplace health and safety laws is essential in Australia, and these investigations ensure that businesses fulfil their obligations to protect their employees.

Workplace Culture Investigations
In some cases, broader concerns about workplace culture may require investigation. This can occur when there are ongoing issues affecting morale, such as repeated complaints about management or widespread dissatisfaction among staff. A culture investigation looks at systemic issues within the workplace and seeks to identify patterns that may be harming the work environment. These investigations provide valuable insights for leadership teams to implement lasting positive change.

How AHR Can Assist with Workplace Investigations
Conducting a workplace investigation requires impartiality, expertise, and a thorough understanding of Australian workplace laws. At Assurance HR (AHR), we specialise in handling workplace investigations with a high degree of professionalism and confidentiality. Whether you’re facing allegations of misconduct, bullying, discrimination, or safety breaches, AHR has the expertise to guide your organisation through the investigation process.

Our team works with you to ensure that every step of the investigation is conducted lawfully and fairly. We help gather evidence, interview witnesses, and provide detailed reports on our findings, making sure you have all the information needed to resolve the issue. By choosing AHR, you can focus on your business while we take care of the complexities involved in workplace investigations, ensuring you remain compliant and maintain a positive work environment. Let AHR be your trusted partner in managing workplace investigations with confidence and care.

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We all understand that training and developing employees is a necessary cost of running a business. The cost depends on the size of the business, the number of employees, as well as the training requirements of your industry. This article discusses whether you can recoup training costs from your employees, and if so, what is the recommended approach.

Deducting from their pay

Taking money out of an employee’s pay before it is paid to them is called a deduction, and there are very limited situations where an employer can make deductions from an employee’s pay. Under the Fair Work Act, an employer can only deduct money if:

the employee agrees in writing and it’s principally for their benefit, or
it’s allowed by a law, a court order, or by the Fair Work Commission, or
it’s allowed under the employee’s award, or
it’s allowed under the employee’s registered agreement and the employee agrees to it.

Examples of a benefit to the employee include salary sacrifice arrangements or additional payments into an employee’s super fund.

We don’t suggest this is the best way to go about recouping training costs, and recommend that you check the terms in your employment contracts, award, or enterprise agreement and seek legal advice before making any deductions.

Entering into a Training Agreement prior to the training

One common frustration we hear is when an employer pays a hefty amount of money to send an employee to training, only to have them resign a short while later.

If you wish to recoup a training cost in this instance, it may be difficult if a prior agreement is not in place. We suggest you include a clause in the employment contract that notifies them of the requirement to enter into a training agreement for any paid training courses they attend during their employment.

The training agreement should state that if an employee resigns within a certain timeframe of completing a paid training course, they will be required to repay a certain amount of money to the Company.

The time frame could be a sliding scale, e.g., the training agreement could state:

if they resign in 3 months, they are required to repay 100% of the training
If they resign in 6 months, they are required to repay 50% of the training
If they resign in 9 months, they are required to repay 25% of the training.

At the end of the day, there is nothing stopping you from asking your employee to pay for their own training. However, if the employment contract does not include a training agreement or the modern award or enterprise agreement is silent on the matter, the employee has no legal obligation to reimburse you for the training.

If this all seems too hard if you are unclear on the steps, or afraid that you would make a mistake, give us a call on 1800 577 515 or email at info@assurancehr.com.au. Alternatively you can book a video chat with Adrian Clark.