Employee training

What it means

Employee training covers courses, training sessions, seminars, conferences and studies that the employer pays for or organises. The aim is to maintain and raise people's qualifications so that they can handle their current work, adapt to change and take on more demanding tasks.

The Labour Code distinguishes induction training for new staff, deepening of qualifications, which is a duty of both employee and employer, and raising qualifications, meaning obtaining a higher level of education. Some forms give rise to a right to study leave.

If training relates to the employer's business, it is tax-deductible for the employer and not taxable income for the employee. If it is unrelated to the employer's activities, it may be taxable benefit in kind for the employee, subject to tax and contributions.

How it works in practice

For costly training, such as an expensive certification course or a degree, a training agreement is often signed. In it the employee undertakes to stay with the employer for a certain time or else repay a proportionate share of the costs.

Systematic training is part of talent management and helps retain key people. In accounting and tax, where rules change frequently, regular training is essential so that staff know the current rules and avoid mistakes.

Some training is mandatory by law, for example on health and safety, fire protection or personal data protection. Security awareness training, which reduces the risk of fraud and data leaks, is also growing in importance.

What to watch out for

The line between work-related training and personal development is not always clear. A language course, for example, may be work-related if the employee needs the language to communicate with foreign clients. It is wise to document the link to the job description.

For training abroad or combined with a stay, the educational part must be separated from leisure. If recreation prevails, the tax authority may disallow part of the costs and treat it as a benefit in kind for employees or as entertainment expenses.