Study Cost Clause Prohibited For Statutory and Mandatory Courses in the Netherlands.

According to the new the EU Transparent and Predictable Employment Conditions, entering into force on August 1, 2022, mandatory training offered by the employer to the employee must be free of charge and is subject to working time. This might impact the study cost clause provided to employees in the Netherlands.

All costs the employee has to incur in connection with following the mandatory training are on the account of the employer. These costs include travel costs, books, other study material and exam fees.

This provision does not cover every course. According to the legislation, this only concerns courses the employer is obliged to offer on the basis of the law or Collective Labour Agreement.

Step 1: Determine if the company by law or the Collective Labour Agreement is obliged to offer the training to the employee.

Check if the profession of the employee is shown on the List of regulated professions.

If the answer is ‘No’, this new directive does not apply and tuition reimbursement clauses will still be allowed. The study agreements already signed prior to this new directive will still be valid.

Step 2: If the answer is ‘Yes’, the costs of the course(s) must be paid by the employer.

A study costs clause related to mandatory training, of which the employee must reimburse costs if the employee resigns within a certain period of time after the training or does not successfully complete the training, are null and void starting August 1, 2022. This also applies to study cost clauses agreed prior to 1 August 2022.

Tuition reimbursement for non-mandatory training will still be allowed after August 1, 2022.

 

 

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