What constitutes a loan

[peewee87]

Hello,
My employer paid some course fees that i have been required to go on and my contract stated that i will need to pay it back if i leave within 2 years.
I know they can deduct it from my final salary however i am wondering if they can just take the whole of my salary or can they not reduce it below the National Minimum Wage as per the government statement:
A deduction can’t normally reduce your pay below the National Minimum Wage even if you agree to it, except if the deduction is for:

• tax or National Insurance
• something you’ve done and your contract says you’re liable for it, eg a shortfall in your till if you work in a shop
• repayment of a loan or advance of wages
• repayment of an accidental overpayment of wages
• buying shares or share options in the business
• accommodation provided by your employer
• your own use, eg union subscriptions or pension contributions

Hence my question: is the payment for the course a loan? i do not believe it is. And If not, I assume they can only deduct my wages for anything above the National Minimum Wage?

[Amethyst]

Re: What constitutes a loan

Is there a clause in your contract like "You agree that any costs repayable under this clause may be deducted from your salary or other remuneration due to you by the Employer" If it's not set out clearly in your contract then it could still be a unlawful deduction.

How long after the training are you resigning ? ( where in the two years are you?)

On minimum wage - yes the final salary deduction can take you below minimum wage ( Commissioners for HM Revenue and Customs v Lorne Stewart Plc 2014 - http://www.employmentcasesupdate.co....aspx?i=ed24866 )