Repayment of training costs , threatened to take from salary

[polka dot]

Thank you for looking over this, I have seen other similar posts but from my research it’s a bit of a grey area and each case is individual.
I handed in my notice at work and have been invoiced for training costs totalling £1,445.
The role was a trainee position and it was part of my job specification to undertake an external training course and to gain a qualification, so it was mandatory.

The company provided no on the job training or support and the external distance learning course wasn’t really fit for purpose. At no point was I made to feel like this training was optional the cost of the course was increased by attending a 2 day work shop in Manchester again I was never told that attendance to the workshop was optional.

My statement of particulars relating to terms and conditions of employment states:
‘’If during the course of your training or up to two years after becoming qualified you leave employment, you may be asked to pay back all or a proportion of your training costs. This will be decided according to individual circumstances.’
This clause is the only mention of repayment of fees and I don’t feel that it is worded very strongly.
I left during the course due to the lack of support so I will have gained nothing from the course.
I handed in my 4 weeks notice and went on annual leave for a week (at the beginning of July)
On my return the company invoiced me for £1,455 payable in August, an itemised break down of the cost, and a proposed repayment schedule for me to sign and a copy of the companies learning and development policy.
I had never had sight of the companies learning and development policy until this point.

The policy consists of:
A training agreement to sign, agreeing to repay a the course cost should you leave (I have never seen this so I have not signed anything else agreeing to reimburse costs)
A sliding scale of repayment based on the completion of the course (I would be entitled to no deduction based on this as I have not completed the course)
That an invoice will be raised for course costs when an employee leaves
That the agreement for reimbursement of cost for an employee in a training post will be part of the employee’s statement of particulars.
That the company will not clawback the cost for any course amount under £1,500. But when there is a number of modules it’s the expected total cost for the combined modules. (I undertook 1 module at a cost of £1,445 and didn’t complete it but the company states as I was supposed to complete a further 4 modules it’s the total expected cost of the 5 modules taken into account which is why there trying to clawback the cost).
I had never had sight of this before and it details quite a bit, so I do feel like the company failed to provide me with the necessary information before signing up to the course.

While working my notice the company harassed me to try and get me to sign a repayment plan, to the point where I had to get signed off sick for the rest of my notice period.

Since then the company has asked me to sign up to the repayment plan on a number of occasions, despite the invoice not being due till August.

The company has threatened to withhold my salary or deduct the full cost of the course from my final salary (due tomorrow/end July) should I not confirm with them how I am going to repay the course costs.

I have told the company I have never authorised deductions to be made from my salary and asked for them to treat the course costs and my final salary as two separate issues. It does not state within my contract that the costs could be recovered from my salary.

I have told them the deduction would take my salary below the national minimum wage and for them not to do it. I have also told them I will enter discussions around the repayment of the course costs when the invoice is due (in August) after I have received my salary and they cannot use my salary against me and make threats using my final salary as a tool.

I am not unwilling to pay the course costs but I am trying to look into whether I have to, they did not fully inform me of my obligations prior to undertaking the course.

Thank you for any response I receive, I just feel bullied into paying them and that there using my salary against me.

[Kati]

Re: Repayment of training costs , threatened to take from salary

@teaboy2 @matt3942 any advice please??

[polka dot]

Re: Repayment of training costs , threatened to take from salary

I have just checked and I have not been paid.

I have again asked my employer to outline which part of my contract says they can make a deduction from my salary, as its not my understanding that this is the case.

I have also asked for a payslip showing the deduction , which has now left me with zero pay.

If they say they have suspended my pay is this technically the same? I am due a month wage today + 5 days holiday pay and they have not paid me anything.

Can my employer use my wages in this way in order to force me into a repayment agreement , which is what there doing.

[Amethyst]

Re: Repayment of training costs , threatened to take from salary

Your employer is not allowed to make deductions from your wages. http://www.acas.org.uk/index.aspx?articleid=4125 - https://www.gov.uk/understanding-you...-from-your-pay

Many employers have training expenses ‘claw-back’ clauses in their contracts – i.e. the contract will say that the Employer can reclaim the cost of training courses they have provided for you, if you leave the employer within a certain period of time of having the training. This may include the cost of the actual training, course materials, course and exam fees, study leave, but should generally only cover formal training that enables an employee to gain a skill that will be useful elsewhere.
These clauses can be valid, but the amount the Employer asks you to repay must be a genuine pre-estimate of the damages/loss which the employer has (or will) suffered, otherwise it will be known as a ‘penalty’ against the employee which is unenforceable. In determining the amount the employee needs to repay the Employer must consider what benefit they have received from the employee undertaking the training and whether the employee would have any knowledge of the amount of the cost they are being asked to repay. The Employer must also demonstrate that you have agreed to repay such costs from your wages in the future (ideally with a signed agreement before you undertook the training) and ideally take the payment in stages (even after you have left the company).

[polka dot]

Re: Repayment of training costs , threatened to take from salary

Thank you Amethyst I thought as much.

By with holding my pay I feel like they are bulling me into agreeing repayment terms favourable to them.

Th invoice is not due until August either so again I feel like they are using my final salary as a tool against me.

[mariefab]

Re: Repayment of training costs , threatened to take from salary

In order to deduct the training fees from your wages, or otherwise reclaim the amount; your employer would need your prior written agreement.
They don't have it so they are not entitled to recoup the cost of the training.

They have an unsigned training agreement. The simple fact that the policy exists achieves nothing without your signature.
They have a clause in your particulars stating that, 'you may be asked to pay...' If asked you are perfectly entitled to say 'No!'

They obviously realised that they had no right to this payment; hence the pressure for you to sign the repayment plan.

Having failed to get you to sign; they have deducted the payment from your wages in the hope that you are unaware of the law in this regard.

FYI see s.13(1)(b) and s.15(1)(b) of the Employment Rights Act 1996 below:

http://www.legislation.gov.uk/ukpga/1996/18/part/II

[polka dot]

Re: Repayment of training costs , threatened to take from salary

what should I do next?
I have communicated with them via email so I have a record.
Should I ask them to pay me and give them a time frame to do so?

In terms of the invoice, the contract states I may be asked to pay. I have been sent an invoice so I have been asked to pay, is it as simple as saying no?

Thanks

[mariefab]

Re: Repayment of training costs , threatened to take from salary

Yes, it is as simple as saying No.
They have no lawful authority to either deduct this from your salary or to require you to pay it.

Do you want me to write up something for you to send to them?

[polka dot]

Re: Repayment of training costs , threatened to take from salary

Hi Mariefab

Yes that would be really useful.

I think in terms of them not paying me its quite clear they have acted unlawfully.

The main help I think I need would be surrounding this invoice and enforceability.

Thank you

[mariefab]

Re: Repayment of training costs , threatened to take from salary

OK, need to cook now so I'll do it in the next couple of hours.

[mariefab]

Re: Repayment of training costs , threatened to take from salary

I would suggest that you send this by email and also by recorded delivery.

Dear ...
My final salary was due on xx/xx/2015. No payment was received nor was a written itemised pay statement sent.
After I handed in my noticed I was informed that you wished to recoup training costs.
You have no lawful authority to do this.

Sections 13 and 15 of the Employment Rights Act 1996 cover the circumstances in which employers can lawfully make deductions or accept payments from employees.
http://www.legislation.gov.uk/ukpga/1996/18/part/II

They do not apply in this case.
My statement of particulars states, 'If during the course of your training or up to two years after becoming qualified you leave employment, you may be asked to pay back all or a proportion of your training costs. This will be decided according to individual circumstances.'

This only gives you the authority to ask me to pay back training costs. I have been asked several times since handing in my notice. For the avoidance of doubt, my answer is still No.
It does not give you any authority to deduct the training costs from my salary without my signed consent. See ERA1996 s.13(1)(b).

I understand that the Company's learning and development policy contains a training agreement to sign, agreeing to repay the course cost should you leave. I have never seen this and I have not signed anything else agreeing to reimburse costs.
In the absence of a signed agreement; you cannot require me to pay the training costs. See ERA1996 s.15(1)(b).

FYI, The retrospective repayment plan that you repeatedly asked me sign after I handed in my notice would not have achieved the result you desired even if I had signed it. See ERA1996 s.15(4).

Please consider this a Letter before action. I expect all monies due to me to be paid within 14 days.

Yours etc.

[teaboy2]

Re: Repayment of training costs , threatened to take from salary

Advice given so far is spot on. Besides in said agreements they are required to give a true and accurate estimate of total training costs - that would be costs of all modules or a break down of total costs for each module, failure to do that makes said policy unenforceable in court.

And as you have been told by others, the fact you never signed such an agreement, means your not bound to such agreement and your therefore not legally obliged to repay the training fees.

With-holding your wages amounts to a breach of section 13 of the employment rights act 1996 for which your eligible to take a claim for to employment tribunal!

[polka dot]

Re: Repayment of training costs , threatened to take from salary

Thank you
I have sent the email this morning, so I will see what there response is.

[polka dot]

Re: Repayment of training costs , threatened to take from salary

I have still not yet had a reply from my old employers.
I have asked payroll for a payslip showing the 100% deduction but they have said that as my pay was suspended a pay slip is not generated. Am I legally entitled to a payslip?

[ostell]

Re: Repayment of training costs , threatened to take from salary

You are entitled to a pay slip