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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 48761
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I have a written contract with my employers. One of the clauses

Resolved Question:

I have a written contract with my employers. One of the clauses of leaving their employment within 18 months is that I pay the company £1000. Can I leave the company without paying this or the full amount? I signed the contract before starting work and have worked with them for 6 months.
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. What is this £1,000 for exactly?

Customer:

Hi Ben, they claim it is for training expenses

Ben Jones :

Did you go through any specific training, have they been able to justify where the money was spent?

Customer:

I went down to a London shop and spent four days with the manager their. They did pay for my train ticket and accommodation, but it did not equate to this

Ben Jones :

ok let me get my response ready please

Customer:

ok

Ben Jones :

Employers can spend a considerable amount of money on training their employees, only to see them leave shortly afterwards. In order to ensure that the employer can provide an employee with training and that the employee does not take advantage of the situation by leaving soon afterwards, it is common practice to have a repayment provision in the contract of employment. Under it the training costs are deemed to constitute a loan to the employee, which becomes repayable if they leave their employment within a certain period after the training completes.


 


Whilst it is legal to have such clauses, employers must be cautious to ensure that the amount of costs they are trying to recover is a genuine pre-estimate of the damages which they have suffered as a result of the employee leaving early. In the event that it is not, such clauses could be considered a penalty against the employee, which would make it legally unenforceable. Therefore, if the employer has derived some benefit from the employee undertaking the training course during the fixed repayment period (e.g. where an employer has been able to charge customers more for an employee’s services by virtue of that training or qualification) then the amounts which may be recovered from the employee should be reduced to reflect that benefit.


 


The contract should also contain a sliding scale of repayment whereby the repayment amount reduces according to the length of time the employee remains with the employer after the training has been completed. For example, 100% of the fees to be repaid if the employee leaves within 0-12 months after the training has finished, 50% if they leave 12-24 months after, 25% if they leave 24 - 36 months after.


 


There are a couple of ways for the employer to try and recover these fees - by deducting them direct from the employee's wages or , if the employee has already left and paid up fully - by taking them to court.


 


Any deductions from the employee's wages can only lawfully take place if there was a clear written agreement by the employee allowing the employer to do this, such as a contractual clause or a separate agreement which they signed. In the absence of such an agreement the deduction will be unlawful and can be recovered.


 


If the matter goes to court, it would be for the employer to show that the repayment clause was reasonably drafted and that the costs they are trying to recover are reasonable in the circumstances. They will have to justify these were genuinely incurred costs and that the amount they seek is a genuine estimate of the losses they may have suffered as a result of the employee leaving early – anything else would likely be seen as a penalty clause and be unenforceable.

Customer:

Thank you for your answer, it has been useful.

Ben Jones :

You are most welcome. Please take a second to leave a positive rating for the advice I have provided as that is an important part of our process. Thank you and feel free to bookmark my profile for future help:



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