Question:
The Company plans to spend approximately VND 650,000,000 to send an employee to Germany to attend a training course on operating an automated production line from 15 September 2026 to 30 November 2026. The Company wishes to require the employee to continue working for the Company for a period of four (04) years after completing the training.
In the event that the employee fails to fulfill the post-training work commitment, may the Company require the employee to reimburse the training costs? If so, what issues should the Company take into consideration to ensure a proper legal basis for requiring such reimbursement?
Answer:
Under the 2019 Labor Code, the employer may agree with the employee on the committed period of employment after training and the obligation to reimburse training costs if the employee breaches such commitment. However, to establish a basis for requesting reimbursement, the employer must enter into a vocational training contract which specifically stipulates the training costs, the committed employment period, as well as the reimbursement obligation of the employee.
Regarding entering into the vocational training agreement
Pursuant to Clause 1, Article 62 of the 2019 Labour Code, where an employee receives vocational training or training to improve his/her occupational qualifications and skills, either domestically or overseas, at the employer’s expense, the employer and the employee must enter into a vocational training agreement.
The vocational training agreement must include the principal contents, including
- the occupation subject to training;
- the place and duration of training and salary during the training period;
- the period of commitment to work for the employer after completion of the training;
- training costs and responsibility for reimbursement of training costs;
- the responsibilities of the employer and the employee.
Accordingly, where the Company spends approximately VND 650,000,000 to send the employee to Germany for training, entering into a vocational training agreement is an important basis for establishing the rights and obligations of the parties, particularly the employee’s post-training work commitment and responsibility to reimburse training costs in the event of a breach of such commitment.Regarding the probationary salary
Under Article 26 of the 2019 Labor Code, the employee’s salary during the probation period shall be agreed upon by both parties but must be at least equal to 85% of the official salary for that job. Therefore, the company’s plan to pay a probationary salary of 75% of the official salary is below the statutory minimum and is prohibited.
Regarding the Post-Training Work Commitment Period
Point c, Clause 2, Article 62 of the 2019 Labour Code requires the vocational training agreement to specify the period of commitment to work after completion of the training. The law does not prescribe a specific maximum period for such work commitment. Therefore, the Company and the employee may agree on a commitment period appropriate to the training costs and training program.
Accordingly, the Company’s requirement that the employee commit to working for the Company for a period of four (04) years after completing the training may be stipulated in the vocational training agreement..
Regarding the Responsibility to Reimburse Training Costs
Clause 2, Article 62 of the 2019 Labour Code provides that the vocational training agreement must include the training costs and responsibility for reimbursement of training costs. In addition, Clause 3, Article 40 of the 2019 Labour Code provides that, where an employee unlawfully unilaterally terminates the labour contract, the employee must reimburse the employer for training costs in accordance with Article 62 of the Labour Code.
Accordingly, the Company may have a basis to require the employee to reimburse training costs where the employee breaches the reimbursement obligations agreed in the vocational training agreement or falls within a case where reimbursement is required under applicable law.
Conclusion
The Company may agree with the employee on a four-year post-training work commitment and the employee’s responsibility to reimburse training costs in the event of a breach of such commitment. To ensure a proper legal basis for requiring reimbursement, the Company should enter into a vocational training agreement in accordance with Article 62 of the 2019 Labour Code, clearly stipulating the commitment period, circumstances giving rise to the reimbursement obligation, method for determining the amount of training costs to be reimbursed, and the employee’s responsibilities.
In addition, the Company should retain all invoices and supporting documents evidencing the actual training costs incurred, particularly costs incurred overseas. Clearly establishing the reimbursement mechanism from the time the vocational training agreement is entered into will help mitigate disputes and provide a basis for the Company to protect its rights and interests where the employee fails to fulfill the post-training work commitment.
