A training bond is a contract between an employer and an employee whereby the former undertakes to pay a stipulated cost for the training of the latter with the understanding that the latter will either remain in employment for a specified minimum period or refund the cost of the training upon resignation.
Employers often require employees to issue undertakings to remain in their service for a specified period of time after acquiring new skills or certificates as a precaution against losses that could result from employees terminating their contracts after receiving the training. From the employer's perspective, this ensures that the employer will recoup the investment made in such an employee in exchange for the employer paying for the employee's acquired skill set or training.
Usually, training bonds contain a clause that offers the employee an option to repay the bond value (the sum expended in training the employee) where such an employee desires to leave the service of the employer, prior to the time specified in the bond or undertaking.
A training bond is a contract and the court will consider the general principles of contract i.e., is it fair and reasonable? Is there evidence of duress? Is there evidence of fraudulent misrepresentation? Is it common industry practice? Will the enforcement of the contract violate public policy? etc. Most big companies in Nigeria have their employees sign a Training Bond, especially the Banks.
There is no hard and fast rule to this, as what applies to each case will depend on the terms of the bond and the circumstance of each case, and training bonds may be enforceable if the terms are fair and reasonable.
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