Tiếng ViệtIn today’s highly competitive labor market, many enterprises are willing to invest significant resources in employee training and skill enhancement. However, numerous cases have arisen where employees resign early or breach their training agreements, leading to training cost disputes — a legal issue that has become increasingly common in practice.
This article by Lexconsult & Partners analyzes the legal regulations, causes, and resolution methods for training cost disputes under the 2019 Labor Code, while also providing practical recommendations to help both employers and employees protect their legitimate rights and interests effectively and lawfully.
1. Definition and Legal Basis for Training Cost Disputes
1.1. What Are Training Cost Disputes? Legal Interpretation Under Vietnamese Labor Law
Training costs refer to all expenses paid by an enterprise to enhance the skills, knowledge, and professional capacity of employees in order to serve business operations or meet job requirements.
According to Clause 3, Article 62 of the 2019 Labor Code, training costs include:
– Valid expenses for trainers, learning materials, schools, classes, equipment, and practice materials;
– Allowances provided to trainees such as salaries, social insurance, health insurance, and unemployment insurance during the training period;
– For overseas training, costs also cover airfare, accommodation, and travel expenses during training.
A training cost dispute arises when the employer and employee disagree on who is responsible for reimbursing or compensating for the expenses incurred during the training process.
Common situations that lead to training cost disputes include:
– The employee resigns before the end of the commitment period stated in the training contract;
– The employee fails to complete the training course but refuses to reimburse training expenses;
– The employer demands compensation exceeding the actual costs or lacks valid documentation;
– The parties fail to sign a clear training contract, making it difficult to determine reimbursement obligations.
Thus, a training cost dispute is a type of individual labor dispute that occurs during or after the implementation of a training contract. It must be resolved in accordance with the legal procedures to ensure both parties’ rights and interests are protected.
1.2. Legal Basis for Resolving Training Cost Disputes Under the 2019 Labor Code
The resolution of training cost disputes is governed by several legal instruments, with the 2019 Labor Code serving as the primary foundation defining the rights and obligations of the parties:
– Article 40: Defines the employee’s obligations when unilaterally terminating a labor contract unlawfully, including the reimbursement of training costs to the employer.
– Articles 59–61: Provide guidance on responsibilities upon contract termination to ensure fairness for both sides.
– Article 62: Specifies mandatory components of a training contract, including the profession, location, duration of commitment, training costs, reimbursement obligations, and the rights and duties of both parties.
Additional guiding instruments include:
– Decree 145/2020/NĐ-CP, as amended by Decrees 129/2025/NĐ-CP, 10/2024/NĐ-CP, and 35/2022/NĐ-CP, which detail labor relations, training, and dispute resolution procedures.
– Law on Vocational Education 2014, which outlines the rights and obligations related to vocational training and skill enhancement.
Accordingly, every training cost dispute must be examined based on the training contract, the Labor Code, and relevant decrees, to determine each party’s liability for reimbursement or compensation and to ensure lawful protection of their interests. However, in practice, many disputes still arise due to inconsistent application of the law or lack of transparency in contractual agreements.
2. Common Causes of Training Cost Disputes
Training cost disputes are among the most frequent types of individual labor disputes, often stemming from disagreements between employers and employees over reimbursement or compensation for training expenses. Below are the most common causes of training cost disputes under current labor laws:
2.1. Employee Resigns Before the Committed Period Ends
– This is the most common cause of training cost disputes.
– After completing a training course, many employees unilaterally terminate their labor contracts or move to another company before the end of the commitment period.
– According to Article 40 of the 2019 Labor Code, in such cases, employees are obligated to reimburse training costs as agreed in the training contract or an annex to the labor contract.
2.2. Training Contract Lacks Clarity on Costs and Compensation Commitments
Another frequent cause is the absence of clear contractual terms regarding:
– The legitimate amount of training expenses;
– The required duration of employment after training;
– The compensation amount if the employee resigns early.
Improperly drafted training contracts make it difficult to determine reimbursement obligations and often lead to disputes. Therefore, employers should consult labor lawyers when drafting training clauses to ensure legality and enforceability.
2.3. Lack of Transparency and Incomplete Documentation of Training Costs
In many cases, employers fail to retain full documentation or calculate training expenses accurately, prompting employees to refuse reimbursement due to doubts about inflated or unsupported costs.
Under Clause 3, Article 62 of the 2019 Labor Code, only expenses with valid documentation (such as invoices, contracts, or payment vouchers) are recognized as legitimate for reimbursement claims.
A lack of transparency directly contributes to training cost disputes between employers and employees.
2.4. Absence of Prior Agreements or Clear Guidance Before Training
– Many enterprises organize internal training or send employees for external courses without signing a training contract or clearly informing them of reimbursement obligations.
– As a result, employees are unaware of their rights and duties, leading to disputes after completing the course or resigning prematurely.
– To prevent this, employers should always prepare written agreements specifying training costs and commitments before conducting any training programs to avoid future legal risks.
3. Methods for Resolving Training Cost Disputes Under Vietnamese Law
When a training cost dispute arises, the parties must choose an appropriate method of resolution to protect their lawful rights and interests. Below are the three most common ways to resolve training cost disputes as stipulated in the 2019 Labor Code:
| Resolution Method | Summary |
|---|---|
| 3.1. Negotiation and Mediation of Training Cost Disputes | Negotiation is the first step that allows both parties to clarify training costs, commitment duration, and reimbursement obligations. If negotiation fails, either party may request assistance from a labor conciliator to record a mediation report, which can serve as legal evidence when necessary. |
| 3.2. Settlement Through Labor Arbitration | When negotiation and mediation are unsuccessful, the parties may submit a request to the Labor Arbitration Council. The arbitrator’s decision is binding on both parties and provides a fast and efficient resolution to the dispute. |
| 3.3. Filing a Lawsuit at Court to Claim Training Cost Compensation | For complex disputes or cases where mediation fails, the employer or employee may file a lawsuit at the People’s Court with jurisdiction to request compensation for training expenses. The court’s judgment, once effective, is legally binding and enforceable. |
Regardless of the chosen method, both parties should prepare all relevant documentation—including the training contract, expense records, and receipts—and seek advice from a labor lawyer to improve their chances of a favorable outcome and minimize potential legal risks.
4. Key Considerations When Resolving Training Cost Disputes
To ensure the resolution of training cost disputes is effective and compliant with Vietnamese labor law, both employers and employees should pay close attention to the following key points:
– Clearly Identify the Cause and Scope of the Dispute: Before proceeding with negotiation or litigation, it is essential to determine the root cause of the dispute — such as the employee’s early resignation, lack of transparency in training costs, or unclear reimbursement clauses in the training contract. Accurately identifying the cause helps select the appropriate resolution method and avoid unnecessary delays.
– Keep Complete Records of Training Contracts and Expense Documents: All training-related expenses must be supported by valid documentation such as invoices, payment vouchers, receipts, and course materials. These serve as crucial legal evidence when the employer claims reimbursement or when the court assesses the employee’s repayment obligation.
– Draft Clear and Comprehensive Training Contracts: A proper training contract should specify: the training field, post-training employment commitment period, training costs, rights and obligations of each party, and reimbursement conditions in case of early termination. This ensures legal clarity and prevents potential training cost disputes.
– Comply with the Statute of Limitations for Dispute Resolution: According to Article 190 of the 2019 Labor Code, the statute of limitations for filing an individual labor dispute is one year from the date the violation of lawful rights or interests is discovered. After this period, claims for reimbursement or lawsuits may be dismissed by the court.
– Prioritize Negotiation or Mediation Before Litigation: Employers and employees are encouraged to negotiate or request mediation from a labor conciliator before taking the dispute to arbitration or court. The mediation record serves as an important legal document demonstrating good faith and cooperation, while also protecting both parties’ interests.
– Seek Legal Advice from a Labor Lawyer: A specialized labor lawyer can assess the legality of the training contract, guide the mediation process, prepare litigation documents, and represent clients before competent authorities. This professional assistance helps minimize legal risks, increase the likelihood of success, and ensure fast and effective resolution of training cost disputes.
5. Legal Consultation from Lexconsult & Partners on Training Cost Disputes
When a training cost dispute arises, seeking advice from a labor law attorney is an essential step to ensure that the negotiation, mediation, or litigation process is handled lawfully and effectively.
With extensive experience in labor law consulting and training contract advisory, Lexconsult & Partners provides comprehensive legal solutions for both employers and employees as follows:
Consultation and Drafting of Legally Compliant Training Contracts
– Develop clear contractual terms regarding training expenses, post-training employment commitments, and compensation obligations in case of early resignation.
– Ensure that all training agreements comply with the 2019 Labor Code and relevant implementing decrees.
Support in Negotiation and Mediation of Training Cost Disputes
– Represent clients — either employers or employees — in negotiation sessions, and prepare legally valid mediation minutes to avoid prolonged litigation.
– Provide detailed guidance on dispute resolution procedures for training cost conflicts under the latest legal regulations.
Representation in Litigation and Protection of Client Rights at Court or Labor Arbitration
– Prepare comprehensive documentation, including contracts, evidence, and solid legal arguments.
– Act as the client’s legal representative throughout the litigation or arbitration process to safeguard their lawful rights and interests.
Preventive Legal Risk Management in Employee Training and Labor Practices
– Review internal procedures, training expenditures, and HR documentation to ensure compliance with Vietnamese labor laws.
– Advise on the development of internal training and reimbursement policies tailored to the company’s operations and industry standards.
Through its proactive and legally sound approach, Lexconsult & Partners helps clients minimize risks, ensure transparency in training investments, and achieve fair, compliant, and efficient dispute resolution outcomes.
6. FAQ – Frequently Asked Questions About Training Cost Disputes
When can an employer request reimbursement of training costs?
→ When an employee resigns before the agreed commitment period or breaches the training contract, the employer has the right to claim compensation for training expenses under Article 62 of the 2019 Labor Code.
Can the employee refuse to reimburse training costs?
→ Yes, if the employer cannot prove the legitimacy of the expenses or if there is no written training contract in accordance with labor law requirements.
What are the required contents of a valid training contract?
→ The contract must include: the training field, duration and location of the training, training expenses, post-training employment commitment period, and reimbursement terms in case of breach.
What is the statute of limitations for filing a training cost dispute?
→ Under Article 190 of the 2019 Labor Code, the limitation period is one year from the date the violation of lawful rights or interests is discovered.
What is the most effective method for resolving a training cost dispute?
→ The process should begin with negotiation and mediation. If these methods fail, the parties may seek resolution through labor arbitration or court proceedings.
What happens if mediation of a training cost dispute fails?
→ The parties may bring the case before the Labor Arbitration Council or file a lawsuit with the People’s Court that has jurisdiction over the dispute.
Should I hire a lawyer to handle a training cost dispute?
→ Yes. A labor lawyer can assess your case, guide you through the process, and represent your interests before the arbitration body or the court to ensure a lawful and effective resolution.
Training cost disputes can be sensitive but manageable if both parties understand and comply with labor regulations. By establishing clear and detailed training contracts, maintaining transparent cost documentation, and seeking guidance from experienced labor lawyers, employers and employees can resolve disputes efficiently, lawfully, and cost-effectively.
If your business is currently facing a training cost dispute or needs assistance in developing a legally compliant training and reimbursement policy, please contact Lexconsult & Partners for comprehensive legal support.
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📧 Email: info@lexconsult.com.vn
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