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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46207
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Jo c its me again, I was made unemployed on December 10th

Resolved Question:

hi jo c its me again, I was made unemployed on December 10th 2009 due to the recession. so I applied to stagecoach bus company in Barnsley for a job and was successful, I started on January 3 2010 they put me through training paying me £190 pw for 4 weeks until my test was past then it went up to £240 pw . the reason I took the job was there was not much work out there, so I stood it for 18 month not liking it, so for 18 months stagecoach took £5 pw out of my wages they called it training bond. if I completed 2 years the bond was paid fore and my wages would go up £9. 03 ph but now they want £1.157. 16p witch is the full amount it cost them to train me. I told them I would pay for the 6 months I owe them but they said no. and sent the debt to a collection firm called premium collections in cheshire
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. Did you have a contract with them and did it specifically state what and when you are required to pay back?
Customer: replied 1 year ago.

i believe there was a contract but sighed under duress. no job if not signed. paying it back no I left in 2012 and they did not make contact with me till 2 months ago.

Expert:  Ben Jones replied 1 year ago.
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.
The debt collectors cannot force you to do anything - they are just used as a threat and to be a nuisance, so if the employer wanted to take more formal action and try to force you to pay anything back then they will have to go to court and show that the repayment clause was reasonable as explained above.
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46207
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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