Recovering Training Fees
Claims

Recovery of Training Fees

Where an employer wishes to recover training fees from employees should they decide to leave shortly after completing their training, then the employer needs to set up a training agreement prior to the training taking place which is entirely separate from the contract of employment. Under the training agreement, the training fees constitute a repayable loan which must be paid back should the employee leave (or be dismissed for gross misconduct) within a certain period post completion of training.

The training agreement should be separate from the contract of employment to ensure that the fees remain recoverable in the event of a breach of contract by the employer.

To be enforceable, the amount recoverable under the training agreement should reasonably reflect the losses incurred by the employer in paying the training fees and the lack of benefit they have derived from the training provision. Accordingly, the amount required to be repaid should be reduced on a sliding scale basis the longer the employee remains with the employer.

To make recovery easier, the employer should make provision within the training agreement to deduct the monies owed from the employee’s salary.