How to recoup training costs from an employee who leaves
Author: Tina Elliott
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- To ensure a legal right to recover training fees from an employee, make certain that there is an express written agreement between the parties.
- Be aware that this agreement could form part of the employee's contract of employment, but will more commonly be contained in a separate training fees agreement.
- Enter into the training fees agreement before the employee embarks on the training.
- Consider drawing up a sliding scale so that the employee's liability reduces, the longer they stay with the company.
- To protect against unlawful deductions from wages claims, make sure that the agreement includes the express right to deduct any outstanding training fees from pay.
- Be aware that a retrospective agreement will not satisfy the requirements for a lawful deduction from wages.
- If the employee leaves and their final pay does not cover all of the outstanding cost, take into account the right to recover the balance as a debt under the terms of the agreement.
- Consider the value of the amount outstanding and the employee's means before embarking on civil proceedings to recover it.