Compensation for Training Costs in Vietnam

According to labor law regulations, compensating training costs to the employer is one of the obligations of the employee when unilaterally terminating the employment contract illegally.

Article 43. Obligations of the employee when unilaterally terminating the employment contract illegally

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3. Must compensate the training costs to the employer according to the provisions of Article 62 of this Code.

Generally, during the course of employment, the employer may decide to send the employee for "training" if they observe that the employee has the potential for advancement. At this time, both parties must sign a vocational training contract if the training activity uses the employer's funds, including funds sponsored by a partner for the employer. The primary content of this contract always includes a clause on the responsibility to compensate the training costs.

Article 62. Vocational training contract between the employer, the employee, and vocational training costs

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2. The vocational training contract must include the following main contents:

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đ) Responsibility to compensate training costs;

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These costs must be based on reasonable and clear grounds. Specifically, they include expenses with valid documentation for payments to instructors, study materials, schools, classes, machines, equipment, practice materials, other support costs for the learner, and salary, social insurance premiums, and health insurance premiums for the learner during the training period. In cases where the employee is sent for training abroad, the training costs also include travel expenses and living expenses during the time abroad.

In practice, the employer should agree on the working period of the employee after training to align with the employment contract to avoid losses. This is because the employer often bears a higher risk. Even if the employee compensates for training costs, the employer may still incur time losses and work delays.

For example: The employment contract of employee A is a 2-year fixed-term contract. During employment, A is sent for training and commits to work for 3 years after the training period for the company. However, 1 year after the training, the employment contract expires and A does not want to renew the employment contract. In this case, the employer cannot claim compensation for training costs.

The above contents are specified in detail in the Labor Code 2012.

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