Work Sponsored Degree - Do I Have To Pay Back?

DiscoDiscoDisco

Hi all,

New to posting on the forum, but always pay it a visit for any queries. Posting as I hadn't found a thread on this.

Basically, I left my employer in the New Year for bigger and better things (bigger pay cheque, better company :T). However, I signed a training agreement back in July 2014 to say that if I left during a degree or within 2 years of completing one, I would be required to pay back a years worth of University fees (£1850).

I did not choose to be put on this course, it was part of natural progression of my apprenticeship (I thought). I had done an ONC (2 years), a Foundation Degree (2 years) and I'm currently doing a BSc (Hons) Degree for which my old employer paid my first and second year's fees.

Again, it didn't seem I had much choice on whether I wanted to do this course, it just suited the company's needs and, therefore, I continued onto it from my Foundation Degree.

Now I have left, they ordered me to sign a letter to say I would set up a direct debit for 12 months, to repay them what 'I owe', and took over £180 out of my final salary (the maximum they could take they said).

They rang my house a few times when I didn't send it straight back and I eventually signed it and sent it back due to being hassled by my parents, as they were essentially being hassled.

I was due to make the first payment the first week in February rolling for 11/12 months. Of course, I didn't set it up (as it was left to me to do), as I didn't think I should repay it. They did pay for my studies, but they also had me on an extremely low wage for the responsibilities involved in my job and in comparison to similar part-time students on my course.

I heard nothing until just recently when I have received a letter ordering me to pay the last 2 months immediately and setup the direct debit to ensure the rest of the 10 months are paid.

I'm wondering if anyone has any experience with this sort of thing, or knows what could happen BY LAW. Obviously, if I could get away without paying it, I would much rather that, as they certainly don't deserve it for the way I was treat over 5 years with the company. They gave me a start in the industry, that is all I can thank them for.

Also, if I do have to pay any of it back, is it possible to just pay them back for the months that I haven't worked for them that they've paid for? For example, I worked from September-December whilst undertaking the degree, so could I just pay them back over 8 months instead of the full 12, as I worked for them for 4 months?

Any help would be much appreciated, especially from those with the technical knowledge OR past experience with this sort of thing (ie what happened with you).

Thanks,

Disco

DiscoDiscoDisco

The short version is here:

• My employer made me sign a training agreement to say I would pay back uni fees on a course that benefitted their goals as a company (not one I had chose).
• Training agreement = leave within 2 years, pay back your last year of course fees (£1850)
• Left 1 year and 4 months into a 3 year BSc (Hons) degree
• They paid for this year and are demanding the full amount back

What I need to know:

1) Am I required to pay?
2) Will it affect my credit rating?
3) What actions can they take

All help would be appreciated!

theoretica

Are you still doing the degree? Why not have a word with your new employer, who will be getting the benefit, and see if they would pay it. You can only ask.

wiogs

1 - yes
2 - only if you do not pay
3 - they can sue you

DiscoDiscoDisco

theoretica wrote: »

Are you still doing the degree? Why not have a word with your new employer, who will be getting the benefit, and see if they would pay it. You can only ask.

Yes, I am still doing the degree. They offered to pay when I took the job on, but I could get £4k per year more by paying for it myself (obviously there is only the one year left to pay at £1850, I'd be daft not to).

wiogs wrote: »

1 - yes
2 - only if you do not pay
3 - they can sue you

I haven't entered into a credit agreement though, so how will it affect my credit rating?

Mattygroves2

DiscoDiscoDisco wrote: »

I haven't entered into a credit agreement though, so how will it affect my credit rating?

You run the risk of a CCJ if they take you to court and win.

DiscoDiscoDisco

Mattygroves2 wrote: »

You run the risk of a CCJ if they take you to court and win.

I was aware of that. But, with a CCJ, don't they have to lodge it and I'm given 28 days in which to respond and put it to bed before it gets brought before a court of law?

Without the CCJ, I'm not at risk of ruining my credit rating.

wiogs

DiscoDiscoDisco wrote: »

I was aware of that. But, with a CCJ, don't they have to lodge it and I'm given 28 days in which to respond and put it to bed before it gets brought before a court of law?

Without the CCJ, I'm not at risk of ruining my credit rating.

But you could get a CCJ against you if they pursue the matter and show that you had agreed to pay them the money but chose to not bother.

Are you hoping they won't chase you further for the money or that if they do you will pay them back before it goes to court?

Poppops

It is very common practice to sign to say you will pay back training costs if you leave within a certain time period

It is also very common to be on a lower wage whilst training. If the employer assumes, and why wouldn't he, that you want to do the qualifications, paying for your training, especially to degree level, is a fantastic perk

The employer didn't force you to do it. You could have left.

If you were a full time student you would likely be in much more debt than this.

Your previous employer is no doubt disappointed that he is out of pocket paying for your training for 6 years which will now be of no benefit to the company. Asking for one year's worth back doesn't sound unreasonable

asajj

There are number of topics around the forum asking the same question.

Companies pay for your degree in the hope that you will gain experience and knowledge through them so that you can be useful for their future plans. They do NOT sponsor your degree because they are a bunch of nice people who are willing to hand out money. They also do NOT sponsor people so they can jump the bandwagon for a bigger paycheck.

You signed a training agreement and you agreed to pay it back if you leave, therefore you are liable.

You might have been on a low age, many others are and they don't get their degrees are funded. Your arguments about how you were treated etc are not relevant.

http://www.moonbeever.com/employment-articles/repayment-of-training-costs

DiscoDiscoDisco

Thanks to everyone for the replies. That link is invaluable and was just what I was looking for.

Sorry if I came across a bit arrogantly (not my intention), but it is a bill I could do without. Was just seeing if it was possible to dodge it. Bitter feelings play a big part in this, but feelings don't change facts, looks like it'll have to be paid.

One last question:

• Would it be unreasonable to pay back 8 months of the fees at the rate they've set out, as they had 4 months worth of work out of this year that they've paid for?

Thanks again everyone!