An employee aired his grievances about racist behavior he's experienced at our firm and put in his notice. What is usually done regarding MBA tuition covered by the company? He still has two years left on his contract...

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You will need to see if any previous greviences were documented and reported to HR Prior. That would determine if the employee expressed these issues or if there is another underlying issue. Also see if his online post voilated any social media policy. Normally, tuition reimbursement is a separate issue and it handle by comp amd legal to recoup if the employee leaves prior to the required time to not have to pay back the funds. Get legal in the conversation to weight the options. And see if it is worth fighting. Sometimes it's not. But overall, believe the employee and thoroughly investigate the claims.

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It could be that the new employer has agreed to buy it out?

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I'd say it really boils down to how egregious the behavior was that the employee complained about. If it's something that could ultimately result in a potential lawsuit, then writing off the balance of what's owed might be the better option. You can speak to an attorney to see if there's any way to come to a settlement where the company agrees not to pursue payback provided the employee agrees not to pursue legal action.

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…instead of worrying about the benefit return, are people actually following up on the claims? That would save the firm more money in the long run. Retention is suffering and they have to be tired of paying all of these joining bonuses only for people to leave after 1-2 years. It costs money to onboard people, attrition costs money as well. Look into the claims and root cause if there’s a pattern there.

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Review the policy on tuition and any agreed upon practice foe the tuition in his contract. As mentioned, check for documentation of any previous allegations. How much are you talking? It can be a pain and costly sometimes to collect the payments back, so sometimes isn't even worth going for and chalking it up as a loss. You also in this case need to evaluate the cost of a filing of discrimination based on constructive discharge, which even if you have proof and could win a lawsuit would still cost money and resources. There is also the possibility that they are bringing it up now and quitting as a way to get an "out" from their contract provisions and could be more likely to file a legal complaint as a way to avoid and or settle any obligations they have. Once again, doesn't matter if it's valid or not, it will still take up resources prior to being found without merit.

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Depends on what the contract says. Most will have to pay it back in some percentage.

I don’t think the company should make him pay it back to racist behavior experience against him.

This is an interesting situation. The first I would do If I were in this case is to review the policy and the contract. From there, I can now gauge my next step.

I see these as 2 separate matters. You have a duty to investigate the claims and take appropriate actions if substantiated.

I would still try and collect the funds that are owed back to the firm based on the policy or contract or promissory they signed.

If they are using the complaint to leverage no repayment or file suit and may have a valid claim then work with your legal reps to come to a settlement.

It really depends on what the contract says. If there's a stipulation asking him to reimburse then he has to. If there's none, then I don't think you can run after him really.

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