Training cost repayment agreement letter template
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.
- 2 pages / 466 words.
- Last updated 13/12/2024.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
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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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.
It is usually delivered to the Employee by the Employer / HR.
It should be actioned as and when required.
Compliance
Compliance
This Training cost repayment agreement letter template incorporates relevant UK laws and HR standards, including those listed below:
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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.
Timings
Timings
Follow these best practice actions to get the most from the Training cost repayment agreement letter template, guiding you before, during, and after implementation:
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| 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) |
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Training cost repayment agreement letter template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
