Rückzahlungsklausel

Substantiv

partial

repayment clause

noun

Comparative law notes

While the German and the Anglo-American concepts share the same purpose of allowing employers to claw-back certain expenses made from an employee who suddenly quits or violate his terms of employment and effect, they diverge on their scope because of the greater degree of protection afforded to employees under German employment law. Indeed, German employment law views these clauses more critically than traditional Anglo-American employment law. only because German courts are keen not to enforce such contractual clauses when the facts reveal unequal bargaining positions between employer and employee and when the circumstances triggering the repayment lie almost exclusively in the employer's sphere of influence.

Definitions of repayment clause

a clause in an employment contract that binds employees to the employer for a certain period of time after the employer has invested in training. Employees are free to move to another company but may be requested to reimburse the cost of the training, or part of the cost.

Payback clauses may encourage companies to invest in training.

a clause in an employment contract that says how money lent to an employee must be paid back to the employer

It is normal company practice to include a repayment clause for any lump-sum payments.

a contract clause that says how money borrowed must be paid back

Under the repayment clause, the final payment had to be paid back within one year of the loan being granted.