Repaying Study Costs in Full before I'm allowed to leave?

[Hayleyt87]

Hello,
I was wondering if anyone could help me,
I have worked for my employer for nearly 4 years now in that time I have had 2 children, due to my childcare arrangements having to change I am unable to continue to work.
My mother and my partners mother used to look after the kids for us but as they are both getting older they are finding it difficult with a toddler and a 7 month old.. I do not earn enough to cover 2 children in childcare, I barely earn enough to cover one child's childcare costs so therefore 2 would be impossible to afford. I made this clear to my employer and gave my 4 weeks notice as required in my contract.
My employer was understanding at first, offering me a slight pay rise, I thanked him for the offer but it still did not cover the cost of childcare, he asked me what it would take for me to stay so I worked out just the cost of childcare which I knew he would not be able to meet.
as I have a study contract in place and have been studying for my qualification I was aware I would have study costs to repay. I don't have any savings and raising 2 children is quite expensive so I asked if I was able to repay these costs in instalments, as my partner would still be working but I would not.
Things took a more formal turn when I was invited in to a meeting where I was told that what I had asked for was not possible and given 3 options, repay in full the 5k costs, continue my employment for a further year which would mean no repayment would be due after that year was up or continue my employment and deduct the instalments from my pay. I mentioned again that I don't earn enough to have someone look after my children for me to come to work and asked again awould it not be possible for me to make instalments myself and was told no they don't believe I would pay it.
I signed an employment contract and study contract when I joined. The employment contract states the following "the company is committed to the continuous development of all its employees, it is vital that employees posses the skills and knowledge to enable them to perform their duties effectively. on completion of your study you must complete at least one years full employment. If you wish to terminate this contract before completion of your study you will be obliged to pay the company in full for all costs incurred"
The breakdown of the 5k dates back to the full costs of my first exam which I completed in 2014 which they have had the benefit of my knowledge since that time.
I was just wondering if anyone could give me some advise as I feel I am being bullied in to staying which I can't afford to do as I can't repay in one lump sum within the next two weeks?
Thank you in advance!

[ostell]

Re: Repaying Study Costs in Full before I'm allowed to leave?

So did your training finish in 2014 after your first exam? If the 5K was spent prior to that exam then you have complied with the contract by having worked for 1 year. IThey can't stop you leaving, you could just walk out now but what could they do? You have explained the situation to them so they would be foolhardy to try and claim the 5K from someone not working. They may not pay you for those 4 weeks but that's another matter.

[Hayleyt87]

Re: Repaying Study Costs in Full before I'm allowed to leave?

Unfortunately not, I have continued to study up until this month as I was unprepared for my childcare arrangements to change and thought I would continue my employment, my qualification consists of 14 exams and work only allow us to sit 2 a year. We actually get paid two weeks in advance so I have already been paid for the whole of may so it would only be two weeks in June I would not receive. Although my employer did not pay over my deducted childcare vouchers to my child care provider which I have contested.
Thanks for your reply

[ULA]

Re: Repaying Study Costs in Full before I'm allowed to leave?

Hi [MENTION=102239]Hayleyt87[/MENTION], just so I am clear the cost of your training was 5k in total which your company paid at the start, you have sat 2 exams per year commencing in 2014 (thereby completing at least 6 exams) however your training will not be completed until all 14 exams have been taken and passed. Can I ask what you are studying and why can you only sit two exams per year?

[Hayleyt87]

Re: Repaying Study Costs in Full before I'm allowed to leave?

Hi [MENTION=51026]Ula[/MENTION], the company have spent 5k in total on my training since 2014, it was paid over the period of the past 4 years. It is my ACCA accountancy qualification which is required for my job, I have completed 6 exams with work and paid for 3 myself but I will not be fully qualified until I have completed all 14 exams. Work only pay for 2 a year which is not written in the contract I signed, but the exam board allows us to take 4 each sitting and there are 4 sittings a year, I have managed to pay for a few myself but as I am quite low paid I could not manage any more than this.
Thank you for replying

[ULA]

Re: Repaying Study Costs in Full before I'm allowed to leave?

The contract makes it pretty clear that if you leave "... before completion of your study you will be obliged to pay the company in full for all costs incurred". I appreciate that the situation you are now dealing with in regard to childcare provision is not one that you had foreseen and this has resulted in your resignation from the company. They cannot force you to stay, you have resigned and are working your notice period, however they can enforce the requirement to pay back your training costs.

I would guess that they will say that any final monies owing to you are offset as contribution to the 5k cost leaving a balance due. That then leaves how to deal with the outstanding balance, ideally you should try and agree some sort of payment plan for a set amount over a period of time. From what you have said your employer does not like this option because they think they will not be paid, however at this point they do not know that would be the case. I would try and put together a reasonable payment plan proposal to them and ask them to at least consider this in the first instance. The alternative is that they sue you for the outstanding monies which will incur them with expense that they may not need to have done assuming that you pay them the monies over the agreed term for the agreed amount. That is also their recourse in the event that you started making payments and then for whatever reason did not continue making them.

[Hayleyt87]

Re: Repaying Study Costs in Full before I'm allowed to leave?

Thank you [MENTION=51026]Ula[/MENTION], I have asked to pay in instalments but they said the only way they will allow this is if I continue to work for the company whilst making the payments which is impossible as I have no other childcare and do not earn enough to cover these costs. Legally can they demand the 5k in a lump sum without allowing me to make instalment payments?
Thanks

[ULA]

Re: Repaying Study Costs in Full before I'm allowed to leave?

In effect their option to "continue to work for the company whilst making the payments" is a bit of a fudge on their part assuming you did still working there then you can continue with your studies. The reimbursement clause is valid only once you have completed your studies and you leave within a year.

Yes they can demand the 5k lump sum, however the only thing I have not seen in what you have posted is any timescale for payment. It says you have to pay them in full but not by when. Just a minor point but maybe one that could be used to your advantage in that you do intend to pay them in full but it will be over a period of time.

So I suggest that you put in writing what your proposal is for repayment of the loan (by that I don't mean £10 a month) point out that this will provide them with full repayment as required in your contract which does not provide for any timescale in which the repayment had to be made. This then means that you have the start of a trail of correspondence.

You need to have this because in the event that they do decide to sue you for the 5k (assuming you can find no way to pay it as a lump sum) then at least you have proof that you tried to find a reasonable way at the outset to repay the costs via an agreed instalment plan.