Can a Dutch employer force you to repay training costs after leaving a job?

For international professionals working in the Netherlands, taking on a new job often brings opportunities for professional growth and skill development. Employers frequently offer training courses, ranging from Dutch language classes to specialised technical certifications. 

However, employers often attach a study cost clause (studiekostenbeding) to training programmes, which serves as a repayment agreement if the employee leaves the company within a set period.

The legal framework surrounding study cost clauses underwent major changes following the implementation of the EU Directive on Transparent and Predictable Working Conditions on August 1, 2022.

So, what exactly is a study cost clause, when is such a clause void and what do recent rulings by the Dutch Supreme Court (Hoge Raad) mean for your employment rights?

What is a study cost clause in the Netherlands?

A study cost clause is a written agreement between an employer and an employee specifying that under certain circumstances (most commonly when the employee resigns or is dismissed for cause within a specified timeframe), the employee must repay all or part of the training costs incurred by the employer.

Historically, such clauses were considered valid provided they met strict legal criteria established by case law:

1. Benefit period: The clause must clearly state the period during which the employer is expected to benefit from the skills acquired.
2. Sliding scale: The repayment obligation must decrease proportionally over time as the employee remains with the company after completing the study.
3. Duty of information and transparency: The total costs and potential financial risks must be clearly explained to the employee prior to starting the training.

However, since August 1, 2022, a statutory rule invalidates many existing and new repayment clauses. 

Have your contract reviewed by Mr. Berendsen Advocaten

Defining mandatory training vs. voluntary training

The core of the current legislation is embodied in Article 7:611a of the Dutch Civil Code. The law strictly distinguishes between two categories of training:

1. Mandatory training (Repayment clauses are void)

When an employer is required by law, an applicable Collective Labour Agreement (CLA, or in Dutch CAO), EU law or internal job requirements to offer training necessary for the performance of your role, the following rules apply:

• The training must be offered completely free of charge (including books, exam fees and travel expenses).
• Study hours are treated as working time and must take place during regular working hours whenever possible.
• Any repayment clause attached to mandatory training is null and void (Article 7:611a(4) DCC). An employer cannot recover these costs under any circumstances, even if the employee resigns or is dismissed.

Examples of training that expats may come across in a job in the Netherlands include mandatory health and safety training, employer-required software/system training or courses required as part of a performance improvement plan or company reorganisation.

2. Voluntary training and professional qualifications

Study cost clauses remain permissible for training aimed at acquiring professional qualifications or diplomas that an employee was already required to possess prior to starting the job (start qualifications), or for purely voluntary courses aimed at personal career development.

In these scenarios, a study cost clause remains valid, provided it respects the requirements of transparency, clear cost specification and a sliding scale. 

Supreme court ruling on training costs

The practical boundary of this law initially sparked debate in Dutch courts. The Dutch Supreme Court (Hoge Raad) provided clarity in a key preliminary ruling.

The case centred on whether a mandatory multi-year training course for trainee advocates constitutes mandatory training for which repayment clauses are prohibited.

The supreme court ruled that:

1. Mandatory professional education that takes place during employment (training on the job) qualifies as necessary training for the position under Article 7:611a(1) DCC.
2. Because the employer is legally obligated to enable the employee to complete this training, Article 7:611a(2) DCC applies, meaning the education must be free of charge.
3. Any study cost clauses or repayment provisions agreed upon for this training are completely void.

This landmark ruling confirms that Dutch courts interpret "necessary training" broadly. For expats working across various sectors, this provides strong legal protection whenever a course or certification is mandated by an employer for job performance.

What should you look out for as an expat?

1. Check the nature of the course. Is the training required by your employer, by law or CAO, or are you taking the course voluntarily for personal growth?
2. Review your employment contract to see if it contains a repayment clause for job-mandatory training. Seek advice because there is a probability that the clause is legally void and your employer cannot deduct those costs from your final paycheck.
3. For voluntary training programmes where a repayment clause is allowed, your employer must inform you in advance about the exact costs and the gradual reduction timeline (sliding scale).