Investing in employee training is something most employers see as a positive step. It helps build skills, boosts confidence, and benefits both the individual and the business. But what happens when an employee decides to leave soon after completing a course? Can the employer ask them to repay the cost of their training, or even deduct it from their final wages, if there’s no formal agreement in place?
This question comes up frequently, especially as professional development becomes more important for career progression. The short answer is: no, not usually, unless it’s clearly agreed in advance.
Let’s take a closer look at what the law says, what’s fair in practice, and what both employers and employees need to be aware of.
What the law says about deductions from wages:
Under Section 13 of the Employment Rights Act 1996, an employer cannot make deductions from an employee’s wages unless:
- It’s required by law (for example, tax or National Insurance);
- It’s allowed by the employee’s contract; or
- The employee has given prior written consent to the deduction.
This means that, in most cases, if there’s no signed agreement about repaying training costs, any deduction from wages including final pay, holiday pay, or bonuses, would likely be unlawful.
As ACAS explains in its guidance on pay and deductions:
“An employer can only make deductions that are required or allowed by law, agreed in writing by the worker, or set out in the contract.”
So, unless there’s something clearly written down and agreed before the training took place, employees are generally entitled to keep their full pay when they leave.
Why employers sometimes try to reclaim training costs:
It’s easy to see the employer’s point of view. Training can be expensive, especially if it’s specialised or includes exam fees, travel, and time off work. If an employee resigns shortly afterwards, it can feel like money that has been wasted.
For example, a company might pay £2,000 for a professional certification course. If the employee leaves within three months, the employer might argue that the benefit was minimal and short-lived and want to recover some of that cost.
However, without a written agreement, the law doesn’t support this. Employers may ask for repayment voluntarily, but employees are not obliged to pay unless they’ve signed something that says they will.
What counts as a valid training cost agreement?
A valid agreement should clearly set out:
- What training is being paid for, and the exact costs involved;
- When repayment applies (e.g. if the employee leaves within 6 or 12 months of completion);
- How repayment is calculated (for example, reducing over time — 100% if leaving within 3 months, 50% within 6 months, etc.); and
- Whether deductions from wages are permitted, with explicit consent from the employee.
If those details are not agreed before the training starts, an employer who later tries to make a deduction could be in breach of employment law.
As Citizens Advice notes in its employment rights guidance:
“Your employer normally can’t take money from your wages to cover training costs unless you agreed to it in writing beforehand.”
What about apprenticeships or statutory training?
There are some exceptions. If the training is statutory for example, health and safety or safeguarding training required by law the employer usually cannot reclaim costs under any circumstances. That’s because it’s the employer’s legal responsibility to provide it.
For apprenticeships, the rules differ again. Apprentices typically have a formal apprenticeship agreement, and training costs are often government-funded or part of the employer’s obligations. It’s extremely rare (and often unlawful) for an employer to ask an apprentice to repay any of these costs.
What employees should do?
If you’re an employee and your employer mentions training cost deductions, here are some practical steps:
- Check your contract and any related policies. Look for clauses about training, study leave, or repayment.
- Ask for written details before starting any course including costs and repayment terms.
- Keep copies of all documents and emails related to your training.
- If deductions are made without your agreement, you can raise it informally first, then use the company’s grievance process, or contact ACAS for advice.
What employers should do?
For employers, the key is transparency and fairness. If you want to protect your investment in training, make sure to:
- Have a clear written training cost agreement signed before the training begins;
- Include repayment terms that are reasonable and proportionate;
- Avoid reclaiming costs for legally required or low-value training; and
- Apply repayment clauses consistently across the workforce.
Agreements that seem unfair for example, demanding full repayment for a course after several years might not stand up to scrutiny, especially if challenged at tribunal.
Both employers and employees benefit from ongoing training and development but it’s important that expectations are clear from the start.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog If a company has gone bust, how do entitled staff claim their statutory redundancy pay?
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