Can company change a

[Heyheyhey1017]

my employer has an educational policy to encourage its employees to pursue designation. Many of these designation take year or two to finally get. For example, if we pursue a CFA designation, which has three levels, the company will add to our salary on an annual basis $5,000 per test and then an additional $5,ooo when you get the designation. If We leave the company within two years we have to pay the company back for any expenses I incurred (fees, review classes). We have to sign a paper agreeing to these terms.

I signed up for a designation that has two separate levels and completed the first. I will complete the second test in March 2018.

Anyway, the company wants to change the policy to each exam only being reimbursed as a one time bonus and not the annual salary bump. Can they change the terms mid way? I started the exams with the terms of an annual increase and wouldn't have undertaken the designation if I knew they would change this.

I believe they entered into a contract to fulfill those terms. Am I right? I have no issue if they change the policy going forward because I have the information and can plan accordingly.

Thanks in advance!

 

[HRZ]

OLd HR view...the company has the right to change things going forward .

The obligation to pay for certifications or advance education can go either way ..in some circles it's into CBAs ..but I doubt that is your case. I think there is at least a moral point to pay based on detrimental reliance to performance of the underlying conditions .

The proposed tax changes may put real ice water on employer paid tuition reimbursement .

I think the street smart approach is to keep quiet and get the certification completed promptly . Multiple reasons , and in part if employer vacated the deal it vacates the requirement to pay them back. ANd I than think of lots of ways the employer can frustrate a critic including reassignment to a garbage detail or equivalent . THe details of the agreement or policy could vary as to repayment duties even if policy changes going forward , so read your details .

YOu and I might agree that this is a poor way to motivate and retain top talent ...but employer gets to make its own decisions . And there may be merits to cut back on certification pay for things not directly relevant to firm needs....and a long debate about pay for performance not degrees/certifications ...but in the end the employer makes the call.

I happen to think a CFA is a major benchmark in many financial circles , don't know about your unnamed certification....but if you are close to completion..I'd get it completed and my mouth shut.

 

[cbg]

The company has a right to change a policy going forward, yes.

Whether or not what you signed under the old policy is contractual is not something we can determine here. You'll have to take whatever it was to an attorney for review.