Training cost repayment agreement letter template
Recent customers:
Supporting information
If you are sponsoring training, use this model letter to inform an employee that repayment of the cost is required if they resign before or shortly after it is complete.
You have the option to 'split' the cost, or commit to pay the full amount. Depending on which, update the appropriate wording.
Training cost repayment agreement letter
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Further to your request to pursue training on the [name of course], I am pleased to inform you that [Company] will contribute toward the cost of the training.
The minimum contribution from [Company] will be £[amount] per academic year for the duration of the training, and the maximum amount that you will be required to pay is £[amount] per academic year for the duration of the training.
The contribution from you will be required to be paid to [Company] by bank transfer no later than [14 | 30] days after the payment of the course to the [College | University].
A review will be held on an annual basis to determine whether the business is able to increase its level of financial support to you for each academic year.
You will appreciate that the cost of the training is substantial and the organisation will
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What is this for?
A Training Cost Repayment Agreement Letter outlines terms for employees to repay training costs if they leave within a specified time.
It includes the amount, payment terms, consequences of non-payment, and legal rights.
This letter ensures clear understanding and compliance with the agreement.
Employment law compliance
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The Employment Rights Act 1996: This outlines the statutory rights that employees have with regard to deductions from wages, including the right to receive written notice of any proposed deductions. Employers must ensure that any proposed training cost repayment deductions are in compliance with the provisions of this Act.
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The Equality Act 2010: This prohibits discrimination on the grounds of age, gender, race, religion, disability, and other protected characteristics in relation to training and development opportunities. Employers must ensure that any training cost repayment policies do not result in discriminatory treatment.
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The Data Protection Act 2018: This sets out the legal requirements for the collection, use, and storage of personal data, including information about training costs and cost recovery policies. Employers must ensure that they are complying with the provisions of this Act when collecting and storing employee data.
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The Apprenticeships, Skills, Children and Learning Act 2009: This sets out the legal requirements for apprenticeships and skills development, including the provision of training to employees. Employers must ensure that any training cost repayment policies are in compliance with the provisions of this Act.
Overall, employers must ensure that they are complying with all relevant employment legislation when implementing a Training cost repayment agreement letter, and that any training cost repayment policies are fair, reasonable, and do not result in discriminatory treatment.
Decision-making milestones
| Step | Description | Responsibility | Timing |
| 1 | Training Cost Assessment: Identify the training costs incurred by the employer for the employee's development. | HR / Training Team | N/A |
| 2 | Company Policies Review: Review company policies related to training cost repayment and legal requirements. | HR / Management Team | Day 1 |
| 3 | Determine Repayment Terms: Determine the specific amount and repayment terms for the training cost agreement. | HR / Management Team | Day 3 |
| 4 | Prepare Agreement Letter: Create a comprehensive Training Cost Repayment Agreement Letter, including the amount, terms, and legal aspects. | HR / Legal Team | Day 5 |
| 5 | Issue the Agreement Letter: After confirming the agreement details, issue the Training Cost Repayment Agreement Letter to the employee, requesting their consent and signature. | HR / Management Team | Day 7 (Or as deemed appropriate) |
