Employer Development Contract - How legally binding is this?

Accountant_for_my_sins

Hi,

I left my previous employer almost two years ago after finishing my accountancy exams because there were too few opportunities for progression within the company. Since then we have been exchanging letters to agree an amount they say I owe them (from an overinflated high of c.£14k, down to c.£6k that they have provided me copy invoices for).

Whilst I am prepared for the fact that I will in all probability have to repay at least some of this money, I wanted to know if there were any grounds to have this amount reduced, the specific reasons I thought might be applicable are below:

1) I undertook the study in order to further my career, but because of their poor succession planning (my view) they allowed a large proportion of their studiers to complete their studies at the same time, therefore making it impossible to be able to offer progression opportunities for all.

2) Probably the more robust argument. In the Development Contract I signed, it states that I must complete an “Individual Progress Report” which would be sent to me at regular intervals, presumably to be used by senior management for planning purposes. I was never asked to complete an “Individual Progress Report”, so can I argue that they didn’t complete their side (or at least part of their side) of the contract?

Any advice would be gratefully received.

Thanks

Tixy

I don't believe point 1 is a valid argument at all.

My opinion would be that you will get nowhere with the second argument. I guess you could try negotiating but I would be surprised if they will agree.

They have incurred the cost and have not benefited from it at all.

You have benefited significantly and in my experience accountancy firms are usually unwilling to negotiate at all on these contracts.

bigadaj

Yup, you can try but you're unlikely to get.

The contract will no doubt have stipulated a lock in period beyond which the charges wouldn't apply to be repaid by you and you could move into another job.

You didn't see out that time and so left for a presumably better job and your former employer is therefore entitled to reclaim their costs from you.

As you have pointed out you are within your rights to question and receive confirmation of their actual costs incurred and only pay those that are valid, but will almost certainly have to pay those.

DCFC79

Accountant_for_my_sins wrote: »

Hi,

I left my previous employer almost two years ago after finishing my accountancy exams because there were too few opportunities for progression within the company. Since then we have been exchanging letters to agree an amount they say I owe them (from an overinflated high of c.£14k, down to c.£6k that they have provided me copy invoices for).

Whilst I am prepared for the fact that I will in all probability have to repay at least some of this money, I wanted to know if there were any grounds to have this amount reduced, the specific reasons I thought might be applicable are below:

1) I undertook the study in order to further my career, but because of their poor succession planning (my view) they allowed a large proportion of their studiers to complete their studies at the same time, therefore making it impossible to be able to offer progression opportunities for all.

2) Probably the more robust argument. In the Development Contract I signed, it states that I must complete an “Individual Progress Report” which would be sent to me at regular intervals, presumably to be used by senior management for planning purposes. I was never asked to complete an “Individual Progress Report”, so can I argue that they didn’t complete their side (or at least part of their side) of the contract?

Any advice would be gratefully received.

Thanks

Agree on an amount and arrange to pay x amount each month if you can't afford payment in one go.

jonesMUFCforever

OP they could claim the reason you did not progress as well as you wanted was because the others were better than you?
It does not hide the fact that they paid for you to qualify and you knew the terms beforehand.
You have to pay back what is owed.
I am not commenting on how much is owed as both sides seem to have been very lax IMO - the amount repayable should clearly have been put down on paper so both sides knew where they stand.

Accountant_for_my_sins

Thanks everyone. I think I'm going to give negotiating with them a go, I'm working on the theory that if you don't ask, you don't get and I can't end up in a worse position!

You never know I might just catch them on a good day!

Thanks again.

catshark88

They've already dropped from £14k to £6k.

They have invoices for the £6k they have spent on you. Pay up.

bouncydog1

As far as I am aware most of the professional exams are taken in batches - you complete the study text and are then examined at the next available exam date - usually twice a year. So this has nothing to do with your employers allowing students to take their exams at the same time.

The cost of funding accountancy exams is huge to employers - not only in cost of tuition and exams but also study leave etc. If you're only having to pay back £6k IMO you've got off lightly - the actual cost to them over the usual 3 years is loads more. You've presumably qualified at their expense so now do the decent thing and pay them back.