Compensation amount for training costs in case of voluntary resignation

Compensation amount for training costs in case of voluntary resignation
Posted date: 26/10/2021

I am a public employee (working under an indefinite-term labor contract) in a Medical Center in City X, Province Y. Around November 2018, the Medical Center sent me to graduate school. The duration of the course is 2 years, the monthly support cost for the course is 5 million VND. Before going to school, I wrote in a commitment that after completing my studies, I will serve at the unit for 4 years. In case of violating, I will refund the training costs under the law.

After completing the course, I worked for the Medical Center for 4 months, then I wrote a resignation letter but the Medical Center did not let me quit the job. So I would like to have some questions:

1. Is it correct that the Medical Center does not allow me to quit my job?

2. If I still voluntarily quit my job, how much will I have to compensate for the training costs?

FDVN’s Opinions:

1. It is legal for the Medical Center to not settle your request of quitting your job.

According to Clause 4 Article 29 Law on Public employee 2010, public employees working under working contracts with an indefinite term may unilaterally terminate their contracts provided that they shall notify such in writing to the heads of their public non-business units at least 45 days in advance; for public employees who fall sick or have accidents and have received medical treatment for 6 consecutive months, such notice must be given at least 3 days in advance.

According to Clause 1, Article 57 of Decree No.115/2020/NĐ-CP dated 25/9/2020 stipulates the recruitment, employment, and management of public employees, public employees may be dismissed in the following cases:

“a) The public employee unilaterally terminates the working contract according to the provisions of Clauses 4, 5 and 6, Article 29 of the Law on Public Employees;

b) The public non-business unit unilaterally terminates the working contract with the public employee when there is one of the cases specified at Points c, d and dd, Clause 1, Article 29 of the Law on Public Employees and Clause 4, Article 2 of the Law on Amendment. amending and supplementing some articles of the Law on Cadres and Civil servants and the Law on Public Employees;

c) The public non-business unit does not renew the working contract with the public employee upon the end of the definite-term working contract.”

However, it is stipulated in Point b Clause 2 Article 57 of Decree No.115/2020/NĐ-CP stipulates that the unresolved public employee shall be dismissed in the case of "Have not worked for the full time committed to the public non-business unit when being sent for training".

According to the information you provided, you were sent by the Medical Center to graduate school within 02 years and you commit that after completing your studies, you will serve and work at the Medical Center for at least 4 years. However, after finishing the training program, you have only worked for the Medical Center for 4 months. Your case is in the case of "Have not worked for the full time committed to the public non-business unit when being sent for training". According to the provisions of Point b, Clause 2, Article 57 of Decree 115/2020/ND-CP, it is lawful that the Health Center has not yet settled the termination of your job.

 

2. Compensation amount for training costs in case of voluntary resignation

It is prescribed in Article 7 of Decree No. 101/2017/NĐ-CP dated September 1, 2017, regarding training and retraining of cadres, civil servants and public employees as follows:

Any cadre, public employee or public official sent to undergo training at the intermediate level covered by the state budget or funding of the authority managing or employing him/her must compensate for the training costs in either of the following cases:

1. He/She drops out or quits his/her job without permission or unilaterally terminates the employment contract during the training period.

2. He/She is not granted a graduation diploma by the training institution.

3. He/She has completed the training course and obtained a graduation diploma but has quitted his/her job or unilaterally terminated the employment contract prior to fully serving for the committed period prescribed in Article 5 or 6 hereof.

 Accordingly, you are falling into the case of quitting the job or unilaterally terminating the employment contract prior to fully serving for the committed period.

According to Clause 1 Article 8 Decree No.101/2017/NĐ-CP dated September 1, 2017, “Compensation includes tuition fees and other expenditures serving the training course, excluding salary and other allowances (if any).

In your case, the calculation of compensation costs shall comply with the provisions of Point b, Clause 2, Article 8 of Decree No. 101/2017/ND-CP dated September 1, 2017:

S =

F

x (T1 - T2)

T1

Where:

- S is the compensation;

- F is the total training costs actually paid by the authority or unit sending the cadre, public official, or public employee to study to 01 people joining a training course;

- T1 is the required length of service after completion of a course (or courses), which is the rounded number of months;

- T2 is the length of service after the training, which is the rounded number of months.

Applying the above formula to your specific case, the amount to be compensated is:

[(5 million x 24 months) : 48 months] x [48 months – 4 months] = 110 million VND.

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