Let’s face it, the cost of studying further is expensive. We all want to upskill ourselves because it helps us to remain competitive and sought-after in the ever- changing employment environment. In light of this, some companies offer opportunities for their employees to study further in areas identified as being the most relevant to the company and its needs.
Human resources manager, Nazreen Khan, says: ‘Offering training and development opportunities to staff members is a great way for companies to ensure that their worker’s skills and knowledge remains up to date.’ She adds that because of the high cost of educating staff, it’s understandable that this benefit is not offered to everyone. So, you need to familiarise yourself with your company’s qualifying criteria, that might include the period of time working there, senioritylevel and whether what you want to study is directly related to your job.
Journalism graduate, Thabo Sithole, took advantage of a company bursary to study towards his honours degree. ‘It was offering tuition fees to young black employees. The conditions weren’t too stringent, and ncluded staying with the company for two years after completion. This way, I got to do a course that I couldn’t afford at a university of my choice, so it worked out really well for me.’ Nazreen says in cases where you are not planning on changing jobs soon and agree with the terms and conditions, accepting sponsorship from the company can be a great wayto access higher education and training.
‘Some companies are reluctant to train and upskill their staff because they become skilled enough to do other work or leave the company. But, at the same time, a highly skilled workforce is good for the company,’ she adds.
TYPES OF BURSARIES
Nonku Mngomezulu accepted a company bursary without fully understanding the terms and conditions. ‘I did a one-year business post-graduate course through the company because I couldn’t afford to pay for myself. But a year later, I found a better job and tendered my resignation.I was then told that I needed to work one more year or pay back the money for the course. I couldn’t afford to, so I stayed. I then read the agreement again, and realised that it was stated that I had to work for the companyfor a certain number of years.’
Attorney, David Akani Sithole, says that this is normal practice. There are generally two kinds of bursaries offered by a company– bursary and/or sponsorship on gratuitous/free basis, and bursaries and/or sponsorships with conditions. With the first type, this may be offered without any rules or contract to pay back the granted monies. But, according to Nazreen, this is rare because companies want to guarantee a return on their investment.
UNDERSTANDING THE FINE PRINT
The second type of agreement is complicated, but more common. It has specific terms and conditions, called specific performance conditions, that you need to understand. David explains that the responsibility of the employer is to make the funds available, and nothing more. By accepting the bursary, you may have certain obligations such as having to work a specified period. And,if you decide to leave, you must give the company the right of first refusal. This means allowing your current employer, that paid for your training, the opportunity to offer or deny you the same job before accepting the other. It’s important to read and understand the contract because not sticking to your end of the deal can have serious implications. ‘If you violate the agreement, your employer will have various legal options such as suing you for restitution, damages or specific performance.’
Restitution claim:
This means you can be sued for the monies paid for you in terms of the agreement, plus interest calculated from the date you are asked to pay to the date of final payment. This means where bursary monies may have been paid annually, your employer could be entitled to claim the entire amount from you, which means you would need to pay a lump sum.
Damages or specific performance claim:
This is about losses that the company suffers when a contract is broken. For example, if the agreement was that you would accept a salary of R20 000 per month for the first two years, and the employer only manages to secure your replacement for R25 000 per month, it will be entitled to claim the difference in salaries from you.
‘These claims can be brought against you at the same time, and should they be successful, they will also reflect as judgements on your credit profile. Some employers and credit providers may take issue with this,’ adds David. Nazreen warns that many employees make the mistake of not understanding what they are getting into and later finding themselves in trouble with hefty bills to pay. So, should you take advantage of that bursary from work? It all depends on whether the terms and conditions work for you. As a general rule, David advises that you consult with a commercial lawyer to ensure that the requirements are in line with your future career goals.
