Can we seek repayment of training fees incurred?
Published on: 06/02/2018
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The Employment Law Team at A&L Goodbody
The Employment Law Team at A&L Goodbody
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The Company recently paid for training for an employee who has just handed in his notice. The employee’s contract provides that we can seek repayment of all training fees incurred if he leaves now – can we enforce this and, if so, how?

Repayment clauses can be enforceable in Ireland. Subject to some exceptions, the Payment of Wages Act 1991 generally allows for deductions from wages in circumstances where the deduction is specifically authorised by the employment contract (as it is here). Among other requirements under the Payments of Wages Act, the amount of any deduction must be fair and reasonable and no greater than the actual cost to the company. The employer must also give notice of the deduction. Whether the employer actually seeks repayment of the full amount of fees or whether they wish to seek a pro-rated amount may feed into any analysis of whether any potential deduction of wages is "fair and reasonable". In most cases, we find that if the employer can agree a series of repayments with the employee that can be the path of least resistance.

An important consideration in all of this is how the employer has dealt with any previous instances of employees resigning having undertaken such training paid for by the company. If this type of repayment clause has not been enforced previously in similar situations then it will be more difficult to enforce it. If the employee feels he has been wronged and that the company has made an unlawful deduction from his wages, he may bring a claim to the Workplace Relations Commission under the Payment of Wages Act.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 06/02/2018
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