New job offer, outstanding training costs and notice periods

[Invertigo]

Hi all,

So, thanks for reading and hopefully being able to offer some help. The situation is as below:

I started a job in summer 2016 and the employer funded a degree course starting Sept 16 for 3 years. As way of 'payment', there was an agreement made that if I should leave the business within a certain time period, I'd be liable for a percentage of the costs. That agreement was signed on 02/09/16.

I've been headhunted and offered a job at a direct competitor for a near 70% pay rise and a better package, commuting arrangements etc so it's absolutely a no brainer that I'm taking it. I've told them I may not be able to start until 06/09/21 and they can handle this. However, I'll be honest and say I've already lost any sort of interest knowing how seriously underpaid I must be to attract such a large increase from a competitor.

As per the above dates, my agreement was signed on 02/09/16 and my last working day would be 03/09/21, putting me effectively into year 6 of the agreement, albeit by a day only. This is crucial as it reduces my liabilities from 20% to 5% of the cost (which for a 3 year BSc is going to be £27k, I expect, unless the employer can claim relief)

Now my contractual notice period is 4 weeks. The contract allows the employer to make payment in lieu of notice if they choose to. My concerns are as follows:

If I were to provide an extended period of notice, could they then start playing games and decide to put me on 'temporary layoff' or some such, or would this then become grounds for constructive dismissal.

If they opt for the PILON option, surely as my notice period extends into year 6 they would have no valid claim to try and recover the year 5 cost levels?

Repayment - I assume I would have to agree a repayment settlement with them, i.e. they can't just deduct the funds from my pay?


My new employer has stated that they can get me started with a weeks notice any time from now, so I'd be more than happy to come to some sort of arrangement as waiving my notice pay and leaving immediately in exchange for my training cost liabilities to also be waived. Assumedly in this case regardless I'd be owed any outstanding holidays including carry overs from last year.

[ULA]

One of my first questions is do you have a restrictive covenant clause in your contract of employment? If so does that prohibit you for a period of time after leaving for working with a competitor? If you have not checked this then please do so as you may land yourself in a predicament.

In answer to your concerns:

Not sure what the benefit would be of providing an extended notice.

If they opt for PILON, which as you are going to a competitor even if you do not have a restrictive covenant clause they might decide to do, then termination is immediate which means that you could potentially not get to year 6. However double ched the PILON clause in your contract it may have been well worded and might clarify how the company will treat your ETD (employment termination date) however if not, assume it is immediate.

Repayment, depending on how much is owed and your what is due to be paid it can be taken from your final salary as I presume this was set out in the agreement you signed in 2016. If you owe more than your final salary then yes the company will have to enter into a payment schedule with you.

By all means you can try and enter an arrangment with your compnay although I am not sure how receptive they will be to giving up the liabilites you have for the training costs.

[Invertigo]

Thanks for the response. To address your points in order:

Restrictive Covenants - not included in any way I can see. The only restrictions are 'during employment' and prohibition of taking any confidential documents or information, both of which I'd expect and obviously honour.

PILON - the clause is brief - "The Company reserves the right to make a payment in lieu of notice" is the only mention.

In terms of repayment, there is nothing in the contract that covers such instances in any capacity. The wording on the signed agreement is "should you leave the business for whatever reason before or after completion of training, we would expect a recovery of these costs through an early exit, in line with the following percentages...."

My angle on the settlement is that it's easier for them to get rid of me instantly at no further cost than to continue paying me to do no work, as it's a commercially sensitive role I'm under no illusions I'd effectively be shut out immediately.

Now, if they can just terminate my contract immediately through PILON and then claim I owe 20% anyway, I'd rather just get it done with faster and get into the better role earlier.

[ULA]

Good luck with whatever you decide and hope the new job goes well.

You know where we are if you have any other questions on this.