OGH on Reimbursement of Training Expenses

Apr 16, 2026 Benn-Ibler Rechtsanwälte

In the context of a labour law dispute, the Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) has recently upheld the validity of repayment agreements for pre-financed training. The claimant in the case at hand had requested EUR 56,666.53 from the respondent to recover pilot training costs that had been advanced. The respondent’s appeal did not demonstrate any procedural or substantive errors by the lower courts.

Applicability of Section 2d AVRAG

The primary issue concerned whether the agreement was subject to Section 2d of the Austrian Employment Contracts Act (Arbeitsvertragsrechts-Anpassungsgesetz, AVRAG), which regulates employer-funded training programs that provide specialised knowledge transferable to other employers. Since there was no employment relationship at the time the agreement was made, nor any stipulated obligation to employ the individual, Section 2d of the AVRAG was deemed inapplicable.

Repayment Terms

The agreement stipulated that repayment requirements would depend on whether an employment contract was established or if the acquired knowledge was applied in a position with another employer. The OGH explained that this arrangement serves as a financing mechanism for a costly training program, providing trainees with the potential to earn a substantial income within the broader labor market, without necessitating an employment relationship.

The repayment obligations do not contravene public policy nor Section 879 of the Austrian General Civil Code (Allgemeines bürgerliches Gesetzbuch, ABGB). The costs correspond to the funds actually incurred by the applicant, and those terms were transparent and comprehensible.

No relevance of further provisions

Provisions such as Sections 11b of the AVRAG and 49a of the Labour and Social Court Act (Arbeits- und Sozialgerichtsgesetz, ASGG) are not applicable, as they presuppose an existing employment relationship.

The OGH thus affirmed that repayment agreements for pre-funded training are legally valid, as long as they are explicitly defined, transparent, and proportionate, regardless of whether an employment contract is ultimately executed.

OGH 9 ObA 36/25x (18 December 2025)