Are "Training Reimbursement" contracts enforceable?
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Join Date: Sep 2002
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Are "Training Reimbursement" contracts enforceable?
Time critical; your help is appreciated. Please refer me to other websites, references, etc.
Many companies make aviators sign a "training reimbursement" contract (if you leave within two years, you owe part or all of the training costs...)
The rumer mill says that these are unenforceable. Does anybody have information about this? Where can I research it? First-hand knowledge and experience is greatly appreciated!
Many companies make aviators sign a "training reimbursement" contract (if you leave within two years, you owe part or all of the training costs...)
The rumer mill says that these are unenforceable. Does anybody have information about this? Where can I research it? First-hand knowledge and experience is greatly appreciated!
Join Date: Feb 2002
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Basically the way it works here is the company provide you with a type rating /base check/ I/R / OPC or LPC, whatever you want to call it these days. You then sign an agreement with the Bank saying that you will pay xxx £/$ or whatever from your salary for XX years untill the Bond is payed off. At the same time the company will put the same amount of wonga into your bank account aswell, again untill the bond is payed off .
If you then decide to leave the company for pastures anew then the company stop there monthly bonus from going into your account , you then still have the agreement with the bank and therefore still end up paying for the typerating.
If you stay with the company then there isn't a problem, you keep your job and type rating is in the bag .When you decide its time to move on a few years down the line ,t hen your bond should be payed off.
This is all perfectly legal and above board.
What has been happening though is that some companies are bonding you a second or third time around , either for promotion from turboprop to jet or right seat to left seat or as in some cases they decide to move you on to a different fleet for reaons of their own. Now as far as I am aware , that is illegal, as you can only be bonded once ; otherwise they are now putting additional financial pressure on you and effectively barring you from any promotion which simply put, is against the employment laws on promotion on the UK . Same thing applies to redundant fleets, ie they trade in say, 757s for A330s , you can't be bonded again , end of story.
Best Advice is to see a lawyer . Hope this helps.
If you then decide to leave the company for pastures anew then the company stop there monthly bonus from going into your account , you then still have the agreement with the bank and therefore still end up paying for the typerating.
If you stay with the company then there isn't a problem, you keep your job and type rating is in the bag .When you decide its time to move on a few years down the line ,t hen your bond should be payed off.
This is all perfectly legal and above board.
What has been happening though is that some companies are bonding you a second or third time around , either for promotion from turboprop to jet or right seat to left seat or as in some cases they decide to move you on to a different fleet for reaons of their own. Now as far as I am aware , that is illegal, as you can only be bonded once ; otherwise they are now putting additional financial pressure on you and effectively barring you from any promotion which simply put, is against the employment laws on promotion on the UK . Same thing applies to redundant fleets, ie they trade in say, 757s for A330s , you can't be bonded again , end of story.
Best Advice is to see a lawyer . Hope this helps.
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Enforceable...in Europe/Asia, generally yes.
In the USA, generally no.
Unfortunately, for those that do intend to remain with a company after training (and why not, after all, when you applied, you asked for work, not a vacation) have, in many cases been "tarred with the same brush" by those that went before, and ran away before completing their contract(s).
You must understand that airline companies offer rather expensive training on type and EXPECT you to stay.
Personally have little time for those that don't.
OTOH, companies should only consider bonding once, and once only. To repeat seems to me to be over the top.
IF companies insist on bonding a second time, management needs to look in the mirror and ask themselves..."what are we doing wrong"...and of course most will not.
In the USA, generally no.
Unfortunately, for those that do intend to remain with a company after training (and why not, after all, when you applied, you asked for work, not a vacation) have, in many cases been "tarred with the same brush" by those that went before, and ran away before completing their contract(s).
You must understand that airline companies offer rather expensive training on type and EXPECT you to stay.
Personally have little time for those that don't.
OTOH, companies should only consider bonding once, and once only. To repeat seems to me to be over the top.
IF companies insist on bonding a second time, management needs to look in the mirror and ask themselves..."what are we doing wrong"...and of course most will not.
The system Smokie describes is also used at my company (may be the same one reading some of his/her other posts)
At the start of the bonding agreement a sum equivalent to the loan is paid into an escrow account which is released to the company if you leave or at the end of the bonding period, or to the bank to pay of the loan should the company go bust. This protects the employee if the company goes under.
Assuming you have no intention of leaving it is a fair system (as is any bond) - but has an advantage if you are a poorly paid turboprop F/O as if you are offered a position on a heavy jet you stand to gain about £15K p.a. out of which you can easily pay £300 per month for a loan. ie the bond doesn't actually stop anyone leaving if the company pay scales are low enough - as they maybe .
At the start of the bonding agreement a sum equivalent to the loan is paid into an escrow account which is released to the company if you leave or at the end of the bonding period, or to the bank to pay of the loan should the company go bust. This protects the employee if the company goes under.
Assuming you have no intention of leaving it is a fair system (as is any bond) - but has an advantage if you are a poorly paid turboprop F/O as if you are offered a position on a heavy jet you stand to gain about £15K p.a. out of which you can easily pay £300 per month for a loan. ie the bond doesn't actually stop anyone leaving if the company pay scales are low enough - as they maybe .
