Recoup training fees from a departing employee


An employee has the right to bring their employment to an end at any time by resigning with the appropriate notice.

Author: Polly Davies
Reading time: 2 minutes

This article is 2 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Our members often provide training for employees, and it is common to want to see some return on that investment in training through retaining the skills of the newly trained employee. 

An employee has the right to bring their employment to an end at any time by resigning with the appropriate notice and so provide an incentive for the employee to remain in the job and to protect against difficulties with unlawful deductions from wages on termination, you should enter into an express agreement with the employee to recoup any training costs.

If you wish to recoup training fees from a departing employee, a training fees agreement before training begins should be implemented.  They can vary according to the length and cost of the training but the amount to be paid back reduces in increments the longer the employee remains with the company. 

For example, if the course cost £2,000, the employee’s liability would reduce to £1,500 six months after the completion of the training, and so on. The agreement could also work on the basis of monthly reductions.  The employee and employer can agree the appropriate terms and they should be well drafted.  Ambiguous arrangements may not be upheld by an employment tribunal in your favour.

Employees have the right not to suffer unlawful deductions from wages, so you should also include a clause in the training agreement which allows deductions from wages.  This will give you the right to make a lawful deduction from the employee’s final salary in respect of any outstanding training fees if they leave.  You cannot obtain authorisation for the deduction after the event, however so clear terms must be in place before the training commences.  

Polly Davies

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.