This review list is intended to educate you about the content of this document and to aid you in its preparation. Tuition reimbursement agreements should be straightforward and concise. If you’re going to do something, then do it. Excessive restriction lessens the desirable quality of your employee’s effort to develop their work skills. Employees that seek this type of reimbursement are typically at the top of your staff. If this is the case, you should reevaluate the employee’s motivation before granting your permission.
- Sign multiple copies, providing one original to the employee and one to be kept in
their personnel file.
Tuition Reimbursement Agreement
Tuition Reimbursement Agreement
This Tuition Reimbursement Agreement is made on ______________ by and between,
________________ (“Employee”) and ___________________ (“Employer”).Where as Employee is an employee of the Employer, and in order to upgrade the skills of the Employee, the Employee has applied for and has been accepted into the _________________ (“Course of Study”) at ______________________ (“Program”) beginning on ___________________ and ending on ______________________.
The Employer agrees as follows:
1. Tuition Repayment. Employer agrees to pay the tuition directly for the Course as long as the Employee is in Employ of the Employer.
2. Repayment Event. Upon the occurrence of any of the following events (“Repayment Event”):
(a) Employment of the Employee at Employer terminates prior to the completion of the Program for any reason whatsoever, including resignation by Employee, or dismissal by Employer with or without cause; or
(b) Employee does not satisfactorily complete any portion of Course, or withdraws from or is expelled from Program, Employer’s obligation to make any further Tuition Payments shall immediately cease, and Employee shall, at the Employer’s option, repay to the Employer all Tuition Payments reimbursed by the Employer up to that point in time.
3. Set-Off. The Employee authorizes and directs Employer to set-off any and all amounts owing to Employer under this Agreement against any amount owing by the Employer to the Employee, including but not limited to salary, wages, bonuses, commissions, vacation pay, termination pay and severance pay, but not including an expense reports.
4. Indemnity. The Employee hereby indemnifies and saves harmless the Employer from and against any and all suits, claims, actions, damages and other losses which the Employer suffers or incurs as a result of any governmental taxing authority assessing the reimbursement of the Tuition Payments hereunder as a benefit to the Employee.
5. Notices.
Any notice required by this Agreement or given in connection with it, shall be in writing and shall be given to the appropriate party by personal delivery or a recognized over night delivery service such as FedEx.
If to the Employee: _____________________________________________________.
If to the Employer: ______________________________________________________.
6. No Waiver.
The waiver or failure of either party to exercise in any respect any right provided in this agreement shall not be deemed a waiver of any other right or remedy to which the party may be entitled.
7. Entirety of Agreement.
The terms and conditions set forth herein constitute the entire agreement between the parties and supersede any communications or previous agreements with respect to the subject matter of this Agreement. There are no written or oral understandings directly or indirectly related to this Agreement that are not set forth herein. No change can be made to this Agreement other than in writing and signed by both parties.
8. Governing Law.
This Agreement shall be construed and enforced according to the laws of the State of ____________________ and any dispute under this Agreement must be brought in this venue and no other.
9. Headings in this Agreement
The headings in this Agreement are for convenience only, confirm no rights or obligations in either party, and do not alter any terms of this Agreement.
10. Severability.
If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.
In Witness whereof, the parties have executed this Agreement as of the date first written above.
_________________________ _______________________
Employee Employer___________________
DateTuition Reimbursement Agreement
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. Tuition reimbursement agreements should be simple and to the point. If you are going to do it, do it. Overly restrictive commentary detracts from the positive nature of your employee’s attempt to improve their work skills. The kind of employee that seeks this kind of reimbursement is generally in the top part of your staff. If not, then think twice about the employee’s motivation before granting your approval.
1. Sign multiple copies giving one original to the Employee and reserving one for their personnel file.
Frequently Asked Questions
What is a tuition reimbursement agreement?
A tuition reimbursement agreement is a contract between an employer and an employee under which the employer agrees to pay tuition for a course of study to upgrade the employee's skills. The agreement outlines the terms of payment and the conditions under which the employee must repay the tuition. It is made between the employee and the employer and specifies the course, program, and dates.
When does an employee have to repay tuition under a tuition reimbursement agreement?
An employee must repay tuition upon the occurrence of a Repayment Event. A Repayment Event includes termination of employment prior to completion of the program for any reason, including resignation or dismissal with or without cause. It also includes failure to satisfactorily complete any portion of the course, withdrawal from the program, or expulsion from the program.
What happens if an employee is fired before completing the program?
If the employee is dismissed by the employer with or without cause before completing the program, that constitutes a Repayment Event. The employer's obligation to make further tuition payments ceases immediately, and the employee must repay the tuition at the employer's option. The agreement does not distinguish between dismissal with or without cause for repayment purposes.
Does an employee have to repay tuition if they resign before finishing the course?
Yes, if the employee resigns before completing the program, that is a Repayment Event. The employer's obligation to make further tuition payments ceases, and the employee must repay the tuition at the employer's option. The agreement states that termination for any reason whatsoever triggers this obligation.
What happens if an employee fails a course or withdraws from the program?
If the employee does not satisfactorily complete any portion of the course, withdraws from the program, or is expelled, that is a Repayment Event. The employer's obligation to make further tuition payments ceases immediately, and the employee must repay the tuition at the employer's option. The agreement does not specify any exceptions for these events.
Who pays the tuition under a tuition reimbursement agreement?
The employer agrees to pay the tuition directly for the course as long as the employee remains employed by the employer. This payment is made directly to the program, not as a reimbursement to the employee. The agreement does not require the employee to pay upfront and seek reimbursement.
What are the key elements of a tuition reimbursement agreement?
The key elements include the identification of the employee and employer, the course of study and program details, the start and end dates, and the employer's agreement to pay tuition directly. The agreement also defines Repayment Events, such as termination of employment before program completion or failure to complete the course. These elements establish the conditions under which the employee must repay the tuition.
Can an employer stop paying tuition if the employee is terminated?
Yes, if the employee's employment terminates prior to completion of the program for any reason, the employer's obligation to make further tuition payments ceases immediately. This includes resignation by the employee or dismissal by the employer with or without cause. The employer may also require the employee to repay the tuition already paid.
What does 'Repayment Event' mean in a tuition reimbursement agreement?
A Repayment Event is any occurrence that triggers the employee's obligation to repay tuition to the employer. The agreement lists two specific events: termination of employment prior to program completion for any reason, and failure to satisfactorily complete any portion of the course, withdrawal, or expulsion from the program. Upon a Repayment Event, the employer's obligation to make further payments ceases, and the employee must repay at the employer's option.
Is tuition reimbursement considered income?
The article does not address whether tuition reimbursement is considered income. It focuses on the agreement terms, including the employer's payment obligation and repayment events. For tax treatment, employees should consult a tax professional.
