Recouping Training Costs

[boliver228]

Hi,

I am due to take a sabbatical from July 2014 to July 2015, and there is not a 100% guarantee that I will return to the company. I am currently in year 3 of a 5 year programme, and there is a clause in the contract that states a proportion of the training fees must be repaid if you leave before the 5 year contract ends.

The clause is located in the terms of reference agreement. It simply states the amount that is due for repayment, says that this can be deducted from wages or any other money due, and then after this is says: Any further outstanding balance due under the terms above will be repayable by the employee on the termination date and shall remain until payment as a debt between employee and company.

Two questions:

1. If I take a sabbatical and decide not to return, will I have to repay the year 3 or 4 costs? The repayment is tiered depending which year you leave, and the contract does not say what happens if you take unpaid leave. Would your contract go on hold whilst on unpaid leave i.e. when I return I would still be in year 3.
2. What happens if you cant afford the repayment? If I had £0 in my bank account on the termination date, would it be treated the same as if you defaulted on a loan? Or would they have to set up a payment plan.

Cheers

[strangewayofsavin]

Re: Recouping Training Costs

Two questions:

1. If I take a sabbatical and decide not to return, will I have to repay the year 3 or 4 costs? The repayment is tiered depending which year you leave, and the contract does not say what happens if you take unpaid leave. Would your contract go on hold whilst on unpaid leave i.e. when I return I would still be in year 3.
2. What happens if you cant afford the repayment? If I had £0 in my bank account on the termination date, would it be treated the same as if you defaulted on a loan? Or would they have to set up a payment plan.

Is a Sabbatical a reason for absence at work? personally and contractually NO.
if you cannot afford to repay the repayment, then you could be taken to court, and forced to repay, commit to a repayment plan, have a 2nd charge put against your property, or (depending on the amount) put through an IVF or bankruptcy.
Perhaps you should think about your future before you sign an contractual agreement,