Training Contracts
02-21-2014 | 05:11 AM
#11
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From: ATP, CFI etc.
1. You are basically signing yourself up for indentured servitude. Prospects might seem nice now, but what about when they decide to downgrade you, tell you that you have to work 7 days in a row, that they need you to cover a little "extra", and so on. The contract gives the company too much leverage.
2. They generally are enforceable on the basic level. If you want to spend a lot of money, chances are good you can get out of it though, but you are going to most likely spend as much in lawyer fees as you would have paying it back. It's cheap for a company to collect on a training contract, because you signed a contract, and it's expensive for the employee to fight it.
3. You should have an attorney look at it [before you sign it]. IMO, there should be requirements for the company too, so that it's not enforceable in a situation where the company has [ruined ...] their business or the owner decided to screw over the rest of the company. Obviously people are going to be looking to jump ship in certain situations, the training contract shouldn't be keeping you from doing so when it's due to something the company does (but chances are that's the way it's written).
4. Question any job that has a training contract. I can understand a year of "probation", but a "training contract" usually comes from a business that is desperate (warning sign!). Lots of jobs cost crazy amounts of money to "train" people and most of those do not have training contracts.
2. They generally are enforceable on the basic level. If you want to spend a lot of money, chances are good you can get out of it though, but you are going to most likely spend as much in lawyer fees as you would have paying it back. It's cheap for a company to collect on a training contract, because you signed a contract, and it's expensive for the employee to fight it.
3. You should have an attorney look at it [before you sign it]. IMO, there should be requirements for the company too, so that it's not enforceable in a situation where the company has [ruined ...] their business or the owner decided to screw over the rest of the company. Obviously people are going to be looking to jump ship in certain situations, the training contract shouldn't be keeping you from doing so when it's due to something the company does (but chances are that's the way it's written).
4. Question any job that has a training contract. I can understand a year of "probation", but a "training contract" usually comes from a business that is desperate (warning sign!). Lots of jobs cost crazy amounts of money to "train" people and most of those do not have training contracts.
I would add that for any company who uses pilot training contracts and decides to terminate an employee, most of them use performance reviews from check airmen to do so. Commonly you'll see a company-paid check airman acting as the de facto hatchet man, suddenly finding a need to check (and fail) a given pilot. The pilot cannot obtain an unbiased, third-party performance rating, free from company bias. More significantly, it makes defending against the lawsuit very hard.
Last edited by Cubdriver; 02-21-2014 at 05:24 AM.
02-22-2014 | 01:29 PM
#12
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Joined: May 2009
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From: DA-2EASy
Hey guys and gals - I really appreciate all the insight and advice and comments you have given.
When I was new here I signed a One Year Promissory Note for the cost of a Hawker PIC Initial; at 1,300 hours and 22 I had no issues with it. It did have clauses in it for monthly repayment for departing employment on my own accord prior to the 12 month time frame.
It also did state should I be terminated by the company, there will be no repayment as it was the company's decision, fair I thought.
Now, as the economy improves and they realize that pilots are looking and we aren't paid anywhere near average salaries for King Air, Hawker, or Falcon they're implementing a Two Year Promissory Note. (For any additional aircraft PIC Type Rating - not recurrents)
I'm at the point where I think I may be marketable enough and as jobs begin to open up I'm just not sure I want to have to stay for another two years for another type.
With what little I know of other corporate operators it seems that you guys are right - they pay well enough and have no need to try to lock people in. 'If we decide to hire you and fly our equipment it's our cost to train you.'
When I was new here I signed a One Year Promissory Note for the cost of a Hawker PIC Initial; at 1,300 hours and 22 I had no issues with it. It did have clauses in it for monthly repayment for departing employment on my own accord prior to the 12 month time frame.
It also did state should I be terminated by the company, there will be no repayment as it was the company's decision, fair I thought.
Now, as the economy improves and they realize that pilots are looking and we aren't paid anywhere near average salaries for King Air, Hawker, or Falcon they're implementing a Two Year Promissory Note. (For any additional aircraft PIC Type Rating - not recurrents)
I'm at the point where I think I may be marketable enough and as jobs begin to open up I'm just not sure I want to have to stay for another two years for another type.
With what little I know of other corporate operators it seems that you guys are right - they pay well enough and have no need to try to lock people in. 'If we decide to hire you and fly our equipment it's our cost to train you.'
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