Is my contract unfair?

carlw

Hi,

I have recently handed in my notice at work, i have another thread going about my notice period but this is a different issue.

My contract of employment states that i am required to study towards my ACCA exams and complete this within 10 years (i have been there 6 years), and all study costs will be paid by my employer.

It also states that if i leave the company i may have to pay the last 12 months study costs back.

I have been planning to leave, and had not wanted to study for about the last 2 years, so stopped studying, about 12 months ago i was given a written warning for not continuing to study and reminded that it was a condition of my employment as outlined in my contract.

I have always thought this sounded a bit unfair, to force a member of staff to study, and also make them pay the study fees back if they leave. This means until i completed my studies i would always have fees to pay back when i left, and would make leaving less attractive.

Now i am leaving (to a job that these studies are not transferable to if this makes a difference) they have ask me to pay back all study costs for the last 12 months.

What is the legal position on this, not the moral position please?

Thanks

heretolearn_2

Legal position is that you have a contract where they can ask for your last 12 months study costs back, and they have. You have to repay it. Whether you wanted to do the study or not is irrelevant, you did.

On the moral and legal side, they are 100% entitled to expect unqualified staff to become qualified. 10 years is a long time to do that in, even for ACCA, and you accepted those conditions when you started on what is a generous trainee scheme. You later changed your mind about wanting to qualify, tough.

carlw

heretolearn wrote: »

Legal position is that you have a contract where they can ask for your last 12 months study costs back, and they have. You have to repay it. Whether you wanted to do the study or not is irrelevant, you did.

On the moral and legal side, they are 100% entitled to expect unqualified staff to become qualified. 10 years is a long time to do that in, even for ACCA, and you accepted those conditions when you started on what is a generous trainee scheme. You later changed your mind about wanting to qualify, tough.

I am sure some people roll out of bed the wrong side and come on here to give an abrupt aggressive response to people who are just asking advice. I will willingly pay back what i am required to if it is fair for my employer to expect that, your first paragraph answers my question. There was nothing added by that second paragraph at all. But thanks

pinkshoes

Legally, you signed the contract and agreed to the T&C, so you need to pay the money back. It's a perfectly reasonable T&C.

wuckfit

I don't know if it applies here, but if the study costs took you below NMW wouldn't that be an unlawful deduction of wages?

stephyt23

pinkshoes wrote: »

Legally, you signed the contract and agreed to the T&C, so you need to pay the money back. It's a perfectly reasonable T&C.

I agree with this. You took the job on knowing you'd have to study but then chose not to.

carlw

that’s great thank you for clarifying the legal position.

It is a generous benefit for an employer to offer to pay for your studies, it just seems like a way for an employer to trap its staff through fear of a large bill if they leave. Especially if they dont just offer to pay but insist you study.

If thats the law though then so be it.

Thanks again.

Googlewhacker

carlw wrote: »

that’s great thank you for clarifying the legal position.

It is a generous benefit for an employer to offer to pay for your studies, it just seems like a way for an employer to trap its staff through fear of a large bill if they leave. Especially if they dont just offer to pay but insist you study.

If thats the law though then so be it.

Thanks again.

In all fairness though they aren't asking for all the money back, just the last twelve months and they wouldn't expect this all in one go so offer an arrangement to pay it back within 6-12 months for example.

paulrn_2

The question to ask was when you signed it did you think it was fair then or were you pleased to get the job with an employer who would train you as well ??

carlw

Googlewhacker wrote: »

In all fairness though they aren't asking for all the money back, just the last twelve months and they wouldn't expect this all in one go so offer an arrangement to pay it back within 6-12 months for example.

Actually they are asking for it all in one go, they have accepted my resignation and in the acceptance letter stated that they will be taking the last 12 months study costs from my final salary payment. Now as my final salary payment will only be for 8 days holiday owed, and my study costs are a reasonable amount. This will in effect mean my final salary payment is almost zero.

Are the study costs taken from my gross or net salary?

carlw

If i remember correctly i can put a self assessment tax claim in for any study costs i am recharged and will be refunded the 20% tax i have paid. Can somebody please confirm this is correct?

Many thanks