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Chris2501

Leaving Current Job and Repayment of Training Costs

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Afternoon all. First time poster here looking for advice.

 

 

I am leaving my current employer to take up a post with another company. I am currently undertaking a distance learning course (half of which has been deferred to 2017 due to personal circumstances), which has not yet finished, so under a signed training agreement I am liable for the full balance of the outstanding costs.

 

 

I held a meeting with my current employer to attempt to set up a repayment plan, as the balance outstanding is over £3,000 and I am not in a position to pay this immediately, but I have informed that my current employer intends to issue me with an invoice for the full amount upon my last day, with an expectation for the full balance to be repaid within 30 days. I have offered to re-pay the balance with 12 monthly payments, but they will not accept this. I have also attempted to explain that I do not have this money available, and that I am more than willing to repay as per a repayment plan.

 

 

The HR manager also questioned me regarding my lifestyle, and advised that I should take a bank loan to repay the sum owed, which I found rather unprofessional.

 

 

What are options around this?

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I can only say that in my field (aviation), the usual thing is that any outstanding 'bonds' or training agreements are settled before the employee can clear. I have known of examples where an outstanding balance has been deducted from final salary payment.

 

On this basis alone I don't think your employer is being unreasonable but please wait for more knowledgable folk to contribute before you give up!

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Hello and welcome to CAG

 

If you signed an agreement which says you need to repay the training costs if you leave, then I think the employer is within its rights to ask for payment when you leave. Does your agreement say anything about payment terms?

 

If you are unable to pay, the employer can in theory take you to court, but that would be pointless if you can't pay.

 

The main risk is that the employer could charge interest at the statutory rate of 8% a year on the unpaid debt. If the employer ends up charging you interest, a low-cost bank loan could be cheaper.

 

Sometimes employers deduct training costs from people's final paypacket. They are only allowed to do that if it says they can in a signed agreement. Do check your agreement to see if it there is a clause allowing them to make wage deductions.


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Hello and welcome to CAG

 

If you signed an agreement which says you need to repay the training costs if you leave, then I think the employer is within its rights to ask for payment when you leave. Does your agreement say anything about payment terms?

 

If you are unable to pay, the employer can in theory take you to court, but that would be pointless if you can't pay.

 

The main risk is that the employer could charge interest at the statutory rate of 8% a year on the unpaid debt. If the employer ends up charging you interest, a low-cost bank loan could be cheaper.

 

Sometimes employers deduct training costs from people's final paypacket. They are only allowed to do that if it says they can in a signed agreement. Do check your agreement to see if it there is a clause allowing them to make wage deductions.

 

There's nothing mentioned in the agreement regarding payment terms for the outstanding fees.

 

There is something mentioned regarding wage deductions but they have signalled that is not something they would do to recoup the costs.

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First and most importantly, make sure things get written down.

 

Try to stick to emails rather than verbal conversations.

 

Ask them to produce the document to which you signed agreeing the deductions.

 

If they fail to point it out to them that it would be unlawful for them to deduct from your pay.

 

If they do, make sure you read the OFT guidelines which has adopted by the Financial Conduct Authority

 

Make sure they follow it to the letter and immediately point it out to them if they make a little deviation.

 

They can't make you get into debt

 

 

NB

 

http://www.infohub.moneyadvicetrust.org/content_files/files/oft664rev.pdf

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Thanks for posting the above guidelines they are very relevant. Section 3.7 b, i and j would be particularly useful for me to highlight. Upon receipt of the invoice, I intend to formally respond with a repayment plan proposing 12 monthly payments. I would hope this would be viewed as sufficient. I don't know if it would be useful to cite these guidelines in the content of the letter?

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Hello

 

My understanding is that the OFT guidelines posted above only apply to the collection of consumer credit debts (such as credit cards or bank loans). I don't think they would technically apply to a debt like this. Just something to bear in mind.


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I believe the guidelines apply to your case.

 

Make sure you state it but remember to include that it has been adopted by the Financial Conduct Authority who took over the role of OFT.

 

Harassment is harassment it doesn't matter who commit it

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