Work plays an important role in the life of every able-bodied person. Everyone has the right to choose an occupation that matches their education, qualifications, abilities and skills. However, irrespective of individual abilities, skills and qualifications, everyone has the same right to formalisation and/or termination of the employment relationship, whether at the beginning or at the end of the employment relationship.
Labour law issues in Latvia are regulated by the following laws and regulations:
This article will be useful for employers and will answer the question whether an employer is entitled to charge an employee for training in addition to a penalty payment.
In my article, I will address the issue of when an employee has to make a final calculation and payment after leaving (termination of employment). Sometimes employers are faced with a situation where the calculation of the final payment is not so straightforward because it turns out that the employee has received training at the employer's expense, so the employer considers that the employee should pay for the training. Such situations arise most frequently in cases where the employer, in addition to the employment contract, concludes an agreement to the employment contract, which makes it an integral part of the employment contract, including the following clauses:
- the employer undertakes to pay for the training from its own resources;
- the worker undertakes to perform the duties of the employer in accordance with the employment contract at least, for example, 12 months, from the date of signature of the agreement;
- if the worker starts the contract before the agreed deadline, the worker will undertake to pay for the training (including a penalty payment).
Before resolving the issue, the employer must be able to distinguish between two different things: whether the employer paid for the employee's further training or whether the employer paid for the training.
So, as we know, up-skilling is necessary for the performance of workers' direct duties. For example, prior training as a lawyer, secretary or accountant is sufficient for the performance of duties and, if the employer has no intention of promoting the employee, the payment of postgraduate tuition fees depends on an individual agreement between the employer and the employee. The above example refers to training other than further training. In this case, the employer may conclude an annex (agreement) to the contract of employment with the employee to cover the tuition fees. According to Section 40(4) of the Labour Law, the agreement concluded by the parties shall be deemed to form part of the contract of employment and to have contractual effect.
If we consider a case where the worker has received training in the context of furthering her qualifications (e.g. an accountant attends a course on changes in tax application or the preparation and submission of returns to the National Revenue Service), the employer, in accordance with Article 96 of the Labour Law, which states that a worker who is sent for vocational training or further training after leaving his job keeps his job The employer shall bear the costs of vocational training or further training, an annex (agreement) to the contract of employment to cover tuition fees may not be concluded. In this case, the employer may not require the employee, in the event of termination of the employment relationship, to bear the costs of his/her further training, including penalty payments. In this case, Article 6 of the Labour Law protects the employee, which provides that the provisions of the collective agreement, the rules of procedure, the contract of employment and the employer's orders which, contrary to the provisions of the legislation, worsen the employee's legal position are invalid.
According to Article 1716 of the Civil Code, Liquidated damages are damages that a person is liable to pay in respect of an obligation if he or she fails to perform that obligation or to perform it properly.
Section 28(3) of the Labour Law provides that the provisions of the Civil Code shall apply to the employment contract, unless otherwise provided in this Law and other normative acts.
In view of the above, the employer must take into account that there is no civil law relationship between the employer and the employee as the primary and predominant relationship, but rather an employment relationship, and therefore the provisions of the Labour Law are primarily applicable. This means that the Labour Law has special legal force vis-à-vis the Civil Law. In this case, the provisions of the Civil Law are of a general nature. However, if a matter is not dealt with in the Labour Law, the Civil Law shall apply to its regulation.
A contentious issue may arise where the employer demands payment of the training fees, but the employee considers at the time that the training was for the employee's professional development and that the knowledge acquired was used at work. In this case, the employer and the employee must be able to agree and understand, otherwise a dispute will arise which will have to be settled in court.
Source: www.ifinanses.lv.
