Do my ex-company have a case against me?

[london_scotty]

.x

[Sidewinder]

If your ex-employer intends to seek recovery action through the Courts then they would only be able to do so upon production of a contractual agreement regarding the repayment of their investment. At the time that you started the course, did you sign any document agreeing to pay under certain conditions, or was there anything in your contract of employment which stated that any sponsorship for professional qualifications would have to be repaid under certain condiions?

[london_scotty]

.x

[Sidewinder]

That was what I was getting at. It is unlawful to deduct money from wages without a signed agreement that the employer may do so. What you have signed above, in particular the part where you agree that '...the company may deduct the neccessary amounts from your salary to recover any monies owed in the event that you leave the company...' is your authority for them to withold part or all of your salary at their discretion.

I would however argue that their actions are unfair and to say the least, petty. They are certainly out of order in withholding your P45. This is a document relating to taxation and as such it must be given to the taxpayer and HMRC on termination of employment. Any money owed to them is in repayment of a loan and not subject to income tax, so they have no reason to keep the P45 pending repayment. I would contact HMRC and get them to apply pressure, particularly if you have started employment elsewhere. You could also fill in a P46 with your new employer declaring that you do not have a P45.

Now, if you accept that you owe the money, then all that you can do is to try to arrange a repayment agreement. You would appear to have signed over any chance of getting the October and November repayments back from them, so need to make the remaining payments in as amicable a manner as possible. You can't use the extra business gained as a justification for them waiving repayment - that wasn't written into the agreement, and from the Chief Executive's apparent attitude I feel that it is unlikely that he will play ball anyway. If the letters that you have received from your old address are the only ones sent then it looks unlikely that they have commenced action to recover what you owe, or there would be solicitor letters and/or Court papers.

Naturally the choice is yours as to whether you do nothing and wait to see what else happens or try to repay the balance in affordable amounts. If you choose the latter then you should contact your ex-employer, say that you have moved and make an offer in order to repay the balance.