Because employees leave companies for a variety of reasons, not all companies ask employees to reimburse their education. Check the wording of your agreement to see if you need to pay tuition fees in the event of dismissal, termination of cause or voluntary separation or any other specific situation. Some student reimbursement contracts do not penalize the employee if the company terminates the employee`s employment contract without the employee`s fault. When you are made redundant, an employer often does not ask you to reimburse the training and training costs because you have not breached the contract. Because the company does not claim a refund, it retains the tax deduction it needs for your education reimbursement. The Michigan Supreme Court overturned the decision in Sands Appliance Services. The Supreme Court found that the study contract was contrary to section 8(1) of the Wage Fringe Benefits Act (WFBA), the court found that the contract was a condition of employment and that without it, the defendant would not have been able to work for the plaintiff. Employers require that the reimbursement of education costs be an agreement to prevent workers who take advantage of their training to find new employment from working elsewhere. Companies protect themselves legally by encouraging employees to refund refunds when the employee leaves the company within a specified period of time after the completion of the training. If you think you have been pushed to leave voluntarily, talk to a lawyer who may be able to make sure you don`t have to pay back the courses. You may need to sign an agreement not to sue your employer for harassment in order to convince them to accept. If you are dismissed for reasons such as insubordination, non-compliance with your obligations, harassment, discrimination, theft or any other serious reason, you may have to pay back your courses. Employers rely on tuition fees to prevent employees from being intentionally fired, so they do not have to pay for master`s degrees, for example.
If you are made redundant for reasons, remind your employer that refunding your tuition fees has tax consequences for the business if the refund is made in full or in part as a tax deduction.