Previous Employer recouping training fees

Bigchief

Hi,I have a dispute with my previous employer over a study agreement that was in place when I left the company.


The agreement was for a part time Masters degree which stated I would pay back the full amount should I fail to complete the course or leave within 2 years of completion. This included course fees, accommodation/travel etc.


The company was taken over (I was TUPE’d over to the new company) and the workload was reducing to the point I was concerned about job stability, so I took a position with another employer (at this stage I was part way through year 2 of my studies).


My new employer paid my year 2 fees to the University and the University reimbursed my old employer.


I have since received a letter from my previous employer requesting payment of the year 1 fees and travel expenses associated with the course. Part of this course was funded via a grant from the Engineering Construction Industry Training Board (ECITB).


My previous employer received a grant payment from the ECITB following successful completion of the first Year of the masters course, therefore I do not believe I should be required to repay this portion of the fees.


The study agreement states that the repayment reduces by 1/24th for every month I work there following completion of the course. I also believe my previous employer directly benefited from my studies in the 10 months I worked there after completion of the first year of the course. Is it reasonable to think the sliding scale should start upon completion of the first year given my previous employer has only paid for this part of the study?


Any advice on this matter would be greatly appreciated.

Comms69

What's morally fair is largely irrelevant - what your contract says is you will repay the full fees, travel etc.


Ofcourse your employer benefited from your studies - that's why they paid for them!


Your concern over job stability, whether justified or not, was your decision.

Undervalued

Comms69 wrote: »

What's morally fair is largely irrelevant - what your contract says is you will repay the full fees, travel etc.


Ofcourse your employer benefited from your studies - that's why they paid for them!


Your concern over job stability, whether justified or not, was your decision.

It may do but even then such clauses are only enforceable if the amount is proportionate and reasonable.

Generally the employer deducts what they think is due from the final salary payment leaving the employee to take action to recover some or all of the amount if they feel they have a case.

It sounds here as if it is the other way round which makes it slightly easier for the OP. I am not saying they don't have a valid claim against the OP for at least some (perhaps all) of the money. However, depending on the amount involved it may be worth taking some professional advice from someone who can see the full agreement and get a full understanding of the circumstances.

sangie595

What we think is reasonable, or what you think is reasonable, is irrelevant. If the employer takes toy to court, what they think is relevant is the only thing that matters. As Undervalued has said, the income the employer received may have some bearing on the amount of the repayment. But the entire of the rest of it is irrelevant - you signed an agreement, it is a reasonable agreement in law, so it is certainly enforceable if the employer wishes to enforce it. The fact that you no longer found it convenient to abide by the legal agreement that you freely entered into is not reLevant, so if you entry into such agreements in the future you should bear in mind that they are enforceable. If you don't want to stay, don't do the course.

Bigchief

Appreciate the feedback.

I completely understand that i entered freely into the agreement. I had no intention of leaving or seeking alternative employment however the downturn in work and uncertainty changed this.

The fees for the first year are 6.5k so it is quite a significant amount to be repaid. If half of this was paid through a grant from the ECITB it does not seem reasonable to reclaim this portion.

As mentioned i think i may need to seek legal advice but I was just curious if I had any sort of case or it was legally as simple as 'you signed it, you need to pay the full amount '.

Gavin83

Have you asked them why they're looking to charge you for the grant? Maybe it's just an error on their part.