There has no be reasonableness, regarding training contracts, or training bonds, for those sitting on both side of the table.
Many a new first officers will receive a Second in Command (SIC) rating rather than a full type rating, if required.
The liability to the new employee, IMO, should be limited solely to direct expenses incurred by the company, such as, for the type rating, excluding hotels, compensation, per Diem in-house training, transportation etc.
Prospective employees are entitled to a breakdown of costs, related to flight training, only, to which they may be responsible for underhe contract. Expenses attributed to flight training should be annexed to the contract. For example: Dry lease for the Full Flight Simulator (FFS), using company employees to conduct simulator training. Company instructors are on the payroll whether conducting training or sitting in their offices. In some cases where there are no FFSs available, actual aircraft training is involved.
The cost of the type rating or SIC rating, if conducted under a 142 training program, using the training facilities instructors (more expensive)
IOE is not to be included as an expense, as the company is making money on revenue flights.
Now... the plan that will be equitable to both parties...
Pro-rate the exposure to the employee over a reasonable period of time. Deduct the prorated amount from pay which would be deposited into an interest bearing an escrow account. The funds, after the stipulated term, would be distributed to the employee. Care on behalf of the employee must be exercised, so as they are not taxed on the deductions. A taxable event to the employee would take place upon distribution of the funds.
Unfortunately many employers prey upon the wannabes, with a “Take it or Leave it”, plan. “Sign the contract if you want to fly here! The old days where, “They won’t chase me down to collect the reimbursement.” are over. Law firms, and collection agencies, have far long reaching arms. And yes... it will be included on the background check... affect the FICO score... credit rating, etc, and not being hired by that Legacy Airline of one’s dreams
Bottom line... consumer beware!