Training Clawback advice

[EngineerMark]

Hi, I was hoping to get some advice on an issue with a training Clawback clause in my contract.

I recently handed in my notice and have been informally told by my manager that I'll need to pay for 100% of training courses received in the last 12 months.

This turns out to be quite a substantial sum, likely to leave me with only a few hundred pounds for a final salary (not ideal...)

My contract does state that if I leave within 12 months then I will pay for the full cost of all training courses etc. However I had no idea of costs at the time I was booked onto different courses, and also I didn't ask to go on any of these training days either, and the training wasn't optional. Also two other members of staff have left within the past 9 months and neither of them had to repay training costs.

Is there anything I can do? One thing that I've noticed (not sure if it's relevant) but in the "termination of contract" section of my contract it references several clauses but not the training Clawback clause. Could this be a way to wriggle out of it?

The advice I've been given so far is to not approach HR about it in case it's an idle threat from the manager so as not to give them any ideas, then try to fight it if my final pay has massive deductions. I'm just concerned because I have my first child on the way and didn't expect such a large hit to my savings before he arrived.

[mariefab]

Can you quote exactly what it says in your contract about training clawback and termination payments/deductions etc.?

[james_law]

To start, if you have signed the contract then regardless if you have read it or not it will be taken that you have accepted all the terms and conditions for your employment. However that is just a starting point and regarding your training clawback clause and it needs be decided what the actual purpose of the clause is. (this is where it will probably best, as stated above, if you post the actual wording of the clause)

Does the clause actually show a true representation of loss or does it just discourage people from leaving. A way of doing this is looking at the difference of breach and the payment. If this figure is so absurd/substantial then it would be classed as a penalty clause and the purpose is deterring breach.

Generally speaking employers wont claw back costs for training that was mandatory and directly associated with the job and also explain why you would need to repay the costs.

I would say if you have signed the agreement then you are contractually bound to these terms and conditions and you would need to pay for the costs of the training. I am going to assume they have reserved the right to take the costs from your wages, if not then this will stand partially in your favour.

[EngineerMark]

Hi guys, thank you for the responses; the exact wording of the contract is as follows:

" 9: Courses

9.1 The company may from time to time pay for you to attend appropriate training courses. Where your employment terminates by reason of your resignation or dismissal due to misconduct within 12 months of any of the undernoted events, you agree to repay the cost of such a training course to the Company in full and you agree to any deduction from any final salary or any other sums due to you.

9.2 The events referred to in clause X.1 are as follows:

9.2.1 the award of any training certificate to you by reason of you attending such a training course; or

9.2.2 completion of such a training course; or

9.2.3 the cost of such a training course being incurred by the Company."



"16. Termination of Contract

16.1 Subject to clause 5, you shall be required to give the Company one month's notice in writing to terminate this agreement unless otherwise agreed between you and the Company.

16.2 Subject to the terms of clauses 5, 16.3 and 16.4, the Company shall be required to give the Employee the following notice to terminate this Agreement:

(Delves into varying lengths of service and corresponding notice periods here)

16.3 The Company shall have the right to terminate this agreement at any time without notice or payment in lieu of notice:

16.3.1 if you are guilty of any serious misconduct or inappropriate behaviour in connection with your employment or which may have a materially adverse impact on the Company or any Group Company; or

16.3.2 if you are guilty of any act of dishonesty or theft; or

16.3.3 if you shall cease (whether on a permanent or temporary basis) to hold any qualification, licence or authorisation specified by the Company as being required by you, or reasonably necessary for the performance of your duties, or if it transpires that you do not hold any qualification, licence or authorisation relevant to the position held by you, which you have represented to the Company that you held; or

16.3.4 in the event of any breach or non-observance by you of any of the terms of this agreement or the non-contractual rules, policies and procedures introduced by the Company from time to time.

16.4 The Company may in its sole and absolute discretion terminate this agreement at any time and with immediate effect by notifying you that it is exercising its right to terminate the agreement with immediate effect and that it will make payment in lieu of all or part of your entitlement to notice within 28 days. For this purpose, you agree that the payment in lieu will consist of an amount equivalent to your pay for the relevant period of notice (or remainder of any notice period) at the rate of Basic Salary (after statutory deductions) but will exclude any other pay elements."

It does look a little open and shut on the face of it I suppose, although there would certainly be a strong argument that the training was essential due to client requests and new policies coming into place after my original start date. I don't know if that matters much?

The overall total for the training (by my estimate as haven't received a formal breakdown yet) would be around 3/5 of my gross monthly salary. It certainly feels like enough of a penalty to me!

[mariefab]

Did you sign and return a copy of your contract?
If you did you're right it's open and shut case.

It would be a penalty if, for example, the courses only cost £1K but the contract said you had to repay £5K .

[james_law]

9.1 The company may from time to time pay for you to attend appropriate training courses.

If they had put ''the company will pay...... then you could have argued that all of the training courses you have attended were ''appropriate'' and needed for you to do your job efficiently, properly and safely. You could still argue this but the fact they have put 'they may pay from time to time' gives them the option to pay, or not to pay, regardless if its appropriate.

I don't like the wording of this clause as its very ambiguous and could be used in a number of different ways. Do you decide if its appropriate or do the company decide. Obviously its far from ideal you lose 3/5 of your monthly salary but I'd take this on the chin and move on and in future read your contract thoroughly to see what your fully signing up to.