Under the PSMB Act 2001, a mandatory levy is imposed on registered employers by The Human Resources Development Corporation (HRDC). This levy fund is then used to reimburse employers for costs incurred under various training schemes – a great opportunity for employers to upskill their employees with minimal financial burden. However, some employers end up facing obstacles when submitting their claims. You may be queried about specific training details, receive only a partial reimbursement (prorated), or the worst, your claim gets completely rejected.
Keep reading to learn what are some common reasons your HRDC claims face difficultly and what you can do to avoid them so you can effectively utilise your levy fund.
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Trainee Attendance
Training Employee. Credit: My TechDecisions
Why It Gets Rejected: Not rejected but prorated actually. The course fees will be prorated if less than 5 trainees attend in-house physical training. For in-house remote online training, the fees will be prorated if the actual number of trainees is less than what was specified in the grant approval.
What You Can Do: Ensure the number of trainees and duration match your approved grant application. Only the actual number of attendees and training days will be reimbursed, so plan your attendance seriously.
Read also: Let’s Talk HRDC: Debunking Common Misconceptions
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Incomplete Training Period
Teamwork Activity. Credit: SessionLab
Why It Gets Rejected: Each trainee is required to attend at least 75% or more of the total training hours. Anything less can result in a prorated claim amount or a full rejection.
What You Can Do: Track attendance for each attendee. Ensure your attendees are aware of this requirement before the training and remind them that leaving early or skipping sessions could cost the company valuable reimbursements.
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Unapproved Equipment Purchases
Indoor Activity Game. Credit: TeamOut
Why It Gets Rejected: You may think it’s a great idea to purchase equipment in advance before your training session. Unfortunately, any equipment purchase made prior to your grant approval is not claimable.
What You Can Do: Only make equipment purchases after receiving your grant approval and be sure to do it within 6 months of the approval date
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Late Submissions of Claims
Paperwork in Office Desk. Credit: Flickr
Why It Gets Rejected: The window to make a claim isn’t around forever. Any claims submitted more than 6 months after the training completion date will automatically be rejected.
What You Can Do: Set your deadlines, set your reminders, and stick to making sure your claims are submitted within the 6 month window.
Read also: For Employers: How To Submit Your HRDC Claim in 5 Steps
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Queries Were Not Responded To
Worried Employee. Credit: CU Management
Why It Gets Rejected: HRDC may raise questions about your submission and send you a query for clarity. If no one responds to this query within the next 6 months, your claim is automatically rejected.
What You Can Do: Never wait until last minute to respond to any queries. Monitor the HRDC portal or your email for any queries made by them. If you’ve received one, respond promptly, ideally within a few days.
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Incomplete or Missing Documents
Incomplete Document. Credit: Notary Jane
Why It Gets Rejected: Training is complete, but alas, your paperwork shows something different. Missing or incomplete documents like attendance lists, unsigned forms, or unclear invoices can bring the whole claim process to a grinding halt or even end it.
What You Can Do: Be diligent in preparing, updating, and storing the necessary documents in advance. For ease, use HRDC’s list of required supporting documents as reference for what documents you should provide, and if queried, ensure you provide the correct documents as soon as possible.
Read also:
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No Prior Grant Approval
Grant Agreement. Credit: Upstock
Why It Gets Rejected: HRDC requires training costs to be approved in advance through a grant application. Any claim submission made without prior grant approval will be rejected.
Running your training before without getting prior official approval? That’s a fast track to rejection at all. HRDC requires all training to be approved in advance through a proper grant application, no backdating, no exceptions.
What You Can Do: Unfortunately, you can’t claim for something you never made an application for in the first place. Make sure to submit your grant application early, and wait for HRDC’s approval before starting any training.
According this webpage: General FAQs – Grant & Claim Application & HRD Corp Claimable Courses (SBL-KHAS) Scheme – Step to apply grant
Ready To Claim Without Issues?
Don’t let the fear of failed HRDC claims weigh you down – plan ahead, adhere to set guidelines, and submit on time. By understanding what are the common issues surrounding HRDC claim failures, you can prepare thoroughly to reduce the painful risk of rejection and secure your claims confidently.
Looking to have to have corporate events or team building sessions? Holidaygogogo offers a one-stop solution which includes end-to-end planning, grant application support, licensed trainers & training providers, photo & videography, door gift supplies, team building, and annual dinner coordination. Contact us for consultation or check out our HRDC-claimable team building packages!
Disclaimer: This article is for informational purposes only and does not guarantee claim approval. Please consult HRDC directly for guidance if your claims are unsuccessful.
