Judgments on disputes over reimbursement of training costs for employees in Vietnam

When is an employee in Vietnam required to reimburse training costs to the company?

Based on Article 40 of the Vietnam Labor Code 2019 regarding the obligations of employees when unilaterally terminating labor contracts illegally:

Obligations of employees upon illegal unilateral termination of labor contracts

1. Not entitled to severance pay.

2. Must compensate the employer half a month's salary according to the labor contract and an amount equivalent to the salary according to the labor contract for the days of not notifying in advance.

3. Must reimburse the employer for the training costs as stipulated in Article 62 of this Code.

In the case where an employee signs a vocational training contract with the company and unilaterally terminates the labor contract illegally, they shall be obligated to reimburse the company for the training costs.

If the labor contract is terminated legally, the employee is only required to reimburse the company for training costs if the vocational training contract includes an agreement on reimbursing training costs and the employee fails to adhere to the commitments in the contract.

What are the components of employee vocational training costs in Vietnam?

Vocational training costs for employees during their education period include the regulations stipulated in clause 3 of Article 62 of the Vietnam Labor Code 2019:

- Study materials, schools, classes;

- Machines, equipment, practice materials;

- Other costs supporting learners;

- Salaries, social insurance, health insurance, unemployment insurance contributions for learners.

Judgments on disputes over reimbursement of training costs for employees in Vietnam

Below is a compilation of judgments on disputes over reimbursement of training costs for employees adjudicated by Vietnamese courts:

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