Training Agreement

DrGash

I have recently completed a Leadership course which was organised and paid for by my employer. Before the course began I was made to sign a training agreement which states that if I leave the company within 18 months I will have the cost of the course (£1000) deducted from my final wage (which is standard and seems fair).

Every 6 months I am given new objectives by senior management which directly affect my annual wage rise and share allocation. If any objectives are not met I receive less of a wage increase and fewer shares.

I have recently accepted a job offer and was wondering about any legal standing I have to decline to pay back the company for the course.

Completion of a Leadership Course was one of the objectives given to me by senior management. This means that if I chose not to complete the course I would not receive a pay rise.

Furthermore, the company I work for have just been through a huge admin restructure which has upset many colleagues and the main reason behind my decision to leave. I have now found out that senior management had known about the admin restructure before they requested that I sign the training agreement.

I believe the admin restructure was the reason behind the leadership course objective and the training agreement as a way to stop all team leaders leaving once the admin restructure plans were released.

I would really appreciate any advice on how to stop the company deducting this money.

Also, even with a training agreement is it legal to deduct money from a wage?

Many thanks for your Time
Dan

Sambucus_Nigra

Yes, it is legal to deduct money from wages if covered by a training agreement. That is why they exist.

ESKIMO

Check the terms of your employment contract. I might be worded something like 'on completion of the training course'. Assuming you didn't complete it. Bob's your uncle! Simples!

They would have to deduct it at the point of issue. They can't pay you your NMW (for arguments sake lets say £250 p/w) and then say "pay us back". It doesnt work like that. Anything in-house should be done by them when they issue your wages, not the other way round.

smileylondongal

It's called a claw-back and this was the reason the training agreement was put into place. Until recently, companies weren't really following through if you were talking about a course that cost less than a couple of thousand but now, with things the way they are, training teams are being asked to justify all spend and claw back as much as they can.

One thing you could do is negotiate with your new company to see if they can cover the cost of this course for you as they'll be the ones benefitting from your new skills. It's a bit cheeky but there'd be no harm in asking.

if you're at all concerned, check first your company policy and re-read the agreement, and then call ACAS who should be able to advise.

HTH!

SarEl

If you signed a training agreement then the law is clear - the debt is owed and the deduction from wages is lawful. Your reasons for leaving are not relevant. And actually I have no idea what Eskimo is talking about, but it appears to be twaddle. They deduct the costs owed after tax, NI and any other deuctions are made; and since it is a final wage they are permitted, if neceassary, to take the whole wage - NMW regulations do not apply to a final wage where a debt is lawfully owed to the employer.

Sambucus_Nigra

SarEl wrote: »

And actually I have no idea what Eskimo is talking about, but it appears to be twaddle.

Me neither - in another thread I used the terminology 'tosh'. However I think twaddle is more appropriate. Simples!

DrGash

Thank you for you help.
It seems the general feeling is that it is lawful for them to deduct the cost of the course from my final wage. I expected that really.

Does anyone know any where I stand "legally" with regards to having to pay for the course? As I wouldnt receive a pay rise if my objective (the course) wasnt completed surely this means the agreement was signed under duress no?

And for the senior managers to withhold information from me until after the agreement was signed is surely unlawful?

Thanks again for your help

SarEl

DrGash wrote: »

Thank you for you help.
It seems the general feeling is that it is lawful for them to deduct the cost of the course from my final wage. I expected that really.

Does anyone know any where I stand "legally" with regards to having to pay for the course? As I wouldnt receive a pay rise if my objective (the course) wasnt completed surely this means the agreement was signed under duress no? No. You could have refused the pay rise and not gone on the course. Up to you.

And for the senior managers to withhold information from me until after the agreement was signed is surely unlawful? No.

Thanks again for your help

I am sorry - you can wriggle, but it won't work. You signed the agreement of your own free will and employers are under no obligation to tell you abouit their plans for the future.

DrGash

The company I work for have just been through a huge admin restructure which has upset many colleagues and is the main reason behind my decision to leave. I have now found out that senior management had known about the admin restructure before they requested that I sign the training agreement.

Sambucus_Nigra

DrGash wrote: »

The company I work for have just been through a huge admin restructure which has upset many colleagues and is the main reason behind my decision to leave. I have now found out that senior management had known about the admin restructure before they requested that I sign the training agreement.

Of course they knew about it - they are the management and they made the decision to restructure in the first place.

I can't see why repeating a paragraph in your first post makes any difference - do you think we can't read?

Savvy_Sue

DrGash wrote: »

The company I work for have just been through a huge admin restructure which has upset many colleagues and is the main reason behind my decision to leave. I have now found out that senior management had known about the admin restructure before they requested that I sign the training agreement.

Why do you think that was illegal? Companies do it all the time. Indeed, one might say they HAVE to do it all the time. I've heard that somewhere I used to work has undergone a complete restructure which means a local office is closing, that must have taken months of planning before employees were told. You can't put everything on hold while you finalise details, nor can you announce it before it's all settled, so of course you carry on with 'business as usual' while everything is sorted out.