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Posted By Peter MacDonald
Is it legal to reclaim the cost of training from an employee if after paying for all their training they leave their post.
Hypothetical question!! please do not judge me!!
Regards
Peter
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Posted By Jan Rowney
Hi Peter,
When I undertook my NVQ4, I had to sign to agree! that if I left within 3 years I would have to repay a percentage of the cost back, that percentage decreasing with each year
This is because in the past several people have undertaken the training, then left shortly afterwards and some people have had the course pre-paid and never completed the course and acquired the qualification.
Jan
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Posted By TBC
Agree with Jan.
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Posted By ITK
Usually yes.
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Posted By Andy Peters
I worked at a company that took the full fees off you if you left within the year. This was stated in my contract and it should be in yours. If not then you may not have to pay them.
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Posted By Paul Devlin
The problems begins when you do actually try and claim it back I would imagine.
If the person leaves of their own account then in all likelihood they might leave with a months salary or couple of weeks wage then how do you go about claiming the money for the training provided which will no doubt be several thousand pounds?
If I were the person I would claim that I was forced to sign a contract under duress (fear of losing job etc) and that the training should have been provided as part of my job in any case.
Isn't training expenses tax deductible?
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Posted By Andy Peters
Paul,
I certainly agree with your comment "training should have been provided as part of my job in any case".
In my industry (Asbestos) it is a legal requirment for companies to provide Information Instruction and Training. I assume this apply across the board??
Andy
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Posted By Peter MacDonald
But is it legal?
Does anyone know the exact law?
On a similar thread are probation periods legal. For example employing someone as a site labourer and saying "we'll give you six weeks to see how we get on"
Peter
Again. The question is hypothetical (honest)
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Posted By Steve Cartwright
Under section 2 of HSWA employers have a duty to ensure they provide employees with information, instruction, TRAINING and supervision. This is a legal requirement. If your employer requires you to do a particular job i.e. Health and Safety Advisor/Manager they have a legal obligation to ensure that you are able to do the job. I can understand why employers do it, but the bits of paper you sign don't mean anything.
An employer may have a case if they pay for training that is not work related.
Steve
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Posted By Gilles27
I believe the practice is called 'amortisation' of training costs which is a brill word. We do it as well.
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Posted By Kieran J Duignan
Legally, the issue is determined by the terms of the contract agreed between employer and employee.
In the event that an employer has not provided any contract of employment, there's no basis for charging and the employee may, in any event, claim damages for failure to provide a contract (after a short timeperiod which I'd look up if I had time).
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Posted By MetalMan
I think this was discussed a couple of months ago in some detail. Another thing to consider is how they would justify claiming the money back if you left the company due to sickness/injury/bullying etc?
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Posted By Martin Taylor
I have certainly been exposed to this and if an employer has this sort of attitude maybe you should be considering if they are the right employer for you.
Two things come to mind:-
1) training is an investment - investments have risks - it sounds as though the employer is looking to protect itself against any risk if you leave without measuring the benefits that the training has provided for them between training and individual leaving
2) if the employer has so little faith that they will be able to provide a work environment where you would wish to stay and develop your career what does that say of them.
If the training is not work related then fine but for work related training I think it stinks
Martin
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Posted By Raymond Rapp
Peter
Although a well trodden subject it is still interesting to note the various views. I have been told that in practice it is very difficult for the company to reclaim any costs for a training course.
Taking a moral standpoint, it really gets my goat when a company can be churlish enough to claim costs when a person is leaving. The other argument for failing to provide funding for a development course is that old chestnut 'they only leave after gaining the qualification'. Rather than question why is the person leaving? If the company were to provide a commensurate raise in salary perhaps people would not leave after gaining a worthwhile qualification.
Finally, many companies benefit from new employees joining the company soon after gaining a qualification. I think they call it 'swings and roundabouts.'
Ray
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Posted By Tony Brunskill
I believe that this is a contract issue. It is legal and the requirements to provide IITS as per HSWA has no bearing as the act does not preclude charging for the training. Many companies provide a career development program that meets the individuals needs for self enhancement, this training may not be essential to the operation of the organisation but is provided as a motivator. Costs can be considerable, particularly when you include the extraction factor. Recovering the costs can be difficult if the individual does not have the means or will to pay. If you have a contract or other agreement you may be able to recover the costs.
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Posted By Tony Brunskill
Sorry, distracted while I was writing the last post. Should have detailed that costs for training can only be levied where the training goes beyond that which is required under the Relevant Statutory Provisions or duties under s2-7.
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Posted By Adrian Watson
Dear All,
An employer cannot charge for information, instruction and training required in pursuance of a statutory duty.
An employer can charge for training not required by a statutory duty. Therefore an employer can charge for developmental training courses e.g. NEBOSH Cert, Diploma etc or offer a course on condition that you repay all or part of the fees if you fail, or leave within a set period. If you agree the employer can take the money from your final salary, with your agreement, or sue you for the money if you don't repay it as agreed in breach of contract!
Regards Adrian Watson
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Posted By Pete48
Peter, you asked for a legal context.
The Employment Rights Act covers the matter of deductions from wages (salaries). From memory it is somewhere around section 13, 14 or perhaps 15 that outlines the items that can be deducted and these have been noted for you already in this thread. Thus, a company is acting lawfully if they have this clawback term in their T&C of employment. If an employee knowingly signs a contract that contains this T&C, they accept it. I am not sure whether it is deemed a condition that needs to be explicit or whether it is considered a implicit T&C.
As to practical application, the logic, I think is, that since responsible and loyal employees are unlikely to ever be put at disadvantage by such a T&C, where is the problem for them? The company however needs to protect itself against unscrupulous employees who might otherwise take advantage, where is the problem?
There is usually a time based drop off scale that only lasts a few years. The other point is that although many companies do have such controls, the final application of them is usually more sensibly applied. As has been mooted here, the difficulties of reclaiming costs would probably be greater than that to be gained.
So, as I see it, no hidden agendas, no nasty manipulative employers; just a sensible T&C that protects the sensible amongst us all.
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Posted By PH
I remember reading about a case a couple of years ago where a high flying graduate from some large high profile company had signed an agreement as her employer had sponsored her through uni etc. at a cost of thousands. She subsequently left and her employer attempted to reclaim the money. It all went to court and her employer lost on the grounds that although they had paid for all the qualifications they had not given her the opportunity to use them, thus she was entitled to go elsewhere.
I do sometimes wonder if companies get employees to sign these sort of things to make them think they will have to pay if they leave, knowing that it is unlikely they will have to do so.
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Posted By jackw.
Hi, As an LA employee I had to sign an agreement to stay for 3 years post my diploma or pay back all/part of it if I left on a sliding scale re how long after completing the course i left. No idea if this is legal re actually taking the money back. Be an interesting test case if anyone felt inclined to take an employer on.
Cheers
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Posted By Tabs
I hate these type of agreements, but I can see the employer's side.
I have worked with companies with specific training budget that has to be shared amongst many hungry mouths. There have been people who mutter about leaving unless they get the training. So, why not look after the budget and the other employees by targeting the spend on long-term investment rather than allow the investment to leave soon after attaining the training?
If you are offered training with strings and you think you might be moving on soon, decline it. I have.
I have been told by one senior person that they tried to sue for the recovery of such expenses and lost (not the case mentioned above).
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