Employer demanding training costs...

DispenserJames

Hi there,

I just need some advice. I have had 3 years worth of training with my current employer and they offered me a job at the end of it, which I declined due to numerous reasons. I started the training in 2012 and will complete it next month, August 2015. The only contract I signed was back in July 2014 just before I was about to sit my 3rd and final year of training. In that contract it states that if I choose to turn down a job and leave I will be liable to pay them back for the costs they have incurred upto that point and from then on. Upon reflection it probably wasn't the best idea to sign at the time but I couldn't afford that final year as it would have totalled £6,000, money which I do not have and would not qualify for a student loan with. I wanted this qualification to get to where I want to be so I signed it.

Since finding out that I don't want to work with them they have issued me a letter today stating that I am to pay them back in full ALL the monies they have paid to train me, this is upwards of £12,00 and dates back to 2012 (before I signed the agreement) WITHIN 14 days!!! I have spoken to ACAS and they say I could dispute the first two years as they should have told me I would be liable to pay the fees if I chose to leave and I do stand in a good position to dispute and negotiate the fees.

What I want to know is do you reckon it would be possible to only repay the final year after the date I signed that agreement? Secondly, I am only on slightly above minimum wage, I have no savings as we rent privately currently and so there is no way for me to gather £6,000 in such a short time let alone £12k! Would it be possible, do you think, for me to negotiate terms of repayments, such as "x" amount each month as this amount is unfair given my position.

If I do contest things, what would my next steps be? Would I need to go to court etc? I just need some advice and guidance.

Thank you very much!

agrinnall

I would suggest that you really need to get proper advice on this to avoid getting it wrong and paying more than you need to - you could try CAB in the first instance, but you may have to speak to an employment solicitor to get your employment contract and the agreement to repay reviewed.

My own non-expert opinion is that you may well be able to contest repayment of the costs before you signed the agreement, and that the costs you are liable to repay should be recoverable over a considerably longer period than 14 days.

Marktheshark

Play a card.
say you will speak with Inland Revenue to see if they could have claimed this as a tax expense deduction.
If they have, they would not have a good legal case to be paid twice.
They might just get windy and revise the demand.

Gingernutty

Many employers do this.

If you leave on completion of training, then you're liable for all the costs, you then pay less of the fees the longer you work there.

Check the contract you signed and/or the staff handbook and check with the union about what you can do.

AndyBSG

So the company spent £12,000 training you and as soon as you completed the training you decided to leave for pastures new and expected to take all the investment they put in you for nowt?

Most companies will operate a clawback of training fees if you leave within a certain period of time precisely to stop that sort of behaviour.

asajj

Did they only pay the last year ? You have signed an agreement and they are right to pursue it as they do fund you to be useful to them not to turn down them to find a better job. If they ask you to pay more than they provided, it is a different matter though.

BoJangles_2

Is it out of the question for you to stay at the company until such a time you won't have to pay anything back?

AntF

DispenserJames wrote: »

Hi there,

The only contract I signed was back in July 2014 just before I was about to sit my 3rd and final year of training. In that contract it states that if I choose to turn down a job and leave I will be liable to pay them back for the costs they have incurred upto that point and from then on.

Thank you very much!

For costs incurred upto that point and then on.

Does that not mean you have signed and agreed to pay for costs upto you signing the contract and future costs.

You would like to think they would have got you to sign something right from the beginning though, however it's not unreasonable for them to request the cost they have paid in investing in your training.

getmore4less

Authorisation for deductions from wages cannot be retrospective.

employment act 13.1.5&6

http://www.legislation.gov.uk/ukpga/1996/18/part/II/crossheading/deductions-by-employer

It would be upto the employer to show prior authorization that complies with the law.
(note it does not allways require signature if contractual)

burnoutbabe

Marktheshark wrote: »

Play a card.
say you will speak with Inland Revenue to see if they could have claimed this as a tax expense deduction.
If they have, they would not have a good legal case to be paid twice.
They might just get windy and revise the demand.

doesn't work like that

year 1 = you'd claim the £6000 cost of training in your P&L

year 2 - you'd have £6000 credit against training costs in your P&L (as thats where the deduction against you would be posted, or maybe salary if they are silly)

So overall, nothing wrong claimed with HMRC

patman99

Op is there no way of rescinding your refusal to accept the job offer?.

If it gets you into a postion whereby you are employed by them and can then start 'working-off' the training costs, then you will only have to tough-it-out for long-enough to be able to leave without repaying them.

The other option, if you are not a home-owner and a bad credit rating won't have any detrimental affects on your career, is to go bankrupt and add this debt to your bankruptcy. Cost to you £750, collected by them £0 (so long as you stay out of work or in a NMW job for the entire period of your BR).

In my shoes, I'd choose option 1. Why?. Because if you have to work, say, 2 years, before the training fees become 'nil to pay', then you have 2 years of assured employment. This will also give you 2 years actual in-the-role experience that will enable you to gain a higher salary/position elsewhere.

You have to remember, in this day and age, jobs are no longer for life. They are for as long as it takes for your employer to change the way they work in order to reduce the staffing levels.