Recovering Training Costs and Salary during training period

[Alex104632]

I've just been offered a new job, within the contract there is a training contract for the company to recover the training costs in the event of me passing the training, but leaving the company within 18 months of doing so (on a sliding scale). I fully expected this to be the case, but the estimated cost of training stated in the contract is significantly higher than I expected. The training would cover the first month of my employment.

Last week I received confirmation from the company that this was calculated as the direct cost of training plus my salary and benefits during the training period. so around 60% of the amount due back to the company would be for my salary rather than the training itself.

Is the company allowed to recover all of these costs? It certainly feels like a red flag to me.

[EnglandPi]

Would it be possible to post a copy of the training contract here or the relevant clauses, showing the calculation?

[Alex104632]

I'm not sure how helpful the copy would be as there is no calculation shown on the contract just an "estimated course/tuition fee". I have only found out what this "fee" consists of through calls and emails with the company. Surely the company is only allowed to recover the direct training costs they incur?

[EnglandPi]

The company can try to recover anything they like but if you dont agree with it dont sign it.

Without seeing the contract terms, I can be of no further help to you. Sorry.

[ULA]

I do not need to see the contract, however please can you check in the training contract what the exact wording is of what they can recover and post it up here. Thanks

[Alex104632]

Thanks for your response, sorry for my late reply. Below are the only two paragraphs of the training contract which refer to the costs.


"The "Company” will meet the fees and other costs of completing the programme (the “Costs”), including:

1.1. Estimated course/tuition fees – £5000"





"Recovery of Training costs

1. Except in the circumstances set out in paragraph 14 where the Company has already incurred liability for the Costs, you shall repay the Company as follows:
   1. 14.1. if you cease employment before you attend the training course, but the Company has already incurred liability for the Costs, 100% of the Costs or such proportion of the Costs that the Company cannot recover from the course provider shall be repaid;
   2. 14.2. where you fail to complete or withdraw from the training course without authorisation from your Functional Director or above, 100% of the Costs shall be repaid;
   3. 14.3. If you leave after passing the [ ] exam, you will have to pay back a sliding scale amount for 12 months from the date you completed your last module
      
      0-6 Months - £5000 7-12 Months - £3000
   4. 14.4. if you cease employment before completing the full training course or qualification, regardless of whether you continue your studies following your departure, 100% of the course Costs shall be repaid;
   5. 14.5. if you cease employment within 18 months of completing the full training course or qualification, the Costs shall be repaid on a pro-rata basis
      
      For example: If the Costs total £5,000 and if you leave within 9 months of completing the training course you would repay £2,500.
      
      Thereafter, no repayment shall be required."

[ULA]

Thanks for posting up the relevant clauses. It would seem that the only detail of costs is stated at "1.1 Estimated course/tuition fees £5000" and does not include salary or benefit costs. I am also struggling to understand why they are trying to claw back these costs as they would have been due to you whether or not you attended the training course.

I would put in writing to your employer that you do not accept that the repayment of training costs should include salary and benefits as this was not expressly stated in the agreement, there is only a reference to course/tuition fees. If you are happy to repay these in accordance with the sliding scale if applicable, then confirm that is the case.

Are they looking to deduct from final salary or is the sum larger than this?

[Alex104632]

Thanks for your help!

Yes they would deduct from the final salary and (depending on where the timing lands on the sliding scale) as the sum is greater than the monthly salary I would be required to "Agree a repayment plan with your line manager and the HR department" for the remaining amount.

[ULA]

Thanks for confirming how they are going to handle the deductions. My suggestion would be as set out in post #7, in regard to writing to them as stated as a first pass and see how they respond.

If you want to post up a draft then i would be happy to review.

Once you have done that and have a response then you can come back to this thread for further advice if you need it.