HR considerations
UK employment law and best practice
This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.
Employers can only make deductions from wages where there is a lawful basis for doing so, including where the deduction is specifically allowed by the employment contract or the worker has agreed to it in writing beforehand. For training costs, Acas confirms that the repayment arrangement should be agreed in the contract or in writing before the training course starts. https://www.acas.org.uk/final-pay-when-someone-leaves-a-job/deductions-for-training-courses
Where a training repayment clause applies, the organisation should check the precise wording of the agreement before seeking recovery. This includes checking which training costs are covered, the period during which repayment applies and whether the amount reduces depending on how long the employee remains with the organisation.
National Minimum Wage considerations are particularly important. A deduction for training that is required by the employer or connected with the employment can reduce a worker's National Minimum Wage pay, including where the deduction is made from final pay. Employers should therefore check the impact of any proposed deduction before processing it. https://www.gov.uk/guidance/calculating-the-minimum-wage/calculating-the-minimum-wage
There is an important distinction where training was voluntary and undertaken for the employee's own development. Acas confirms that a deduction for voluntary training can, in specific circumstances, take pay below the National Minimum Wage where the worker agreed in writing beforehand to repay the costs and they voluntarily leave or are dismissed for conduct. The circumstances should be checked carefully before relying on this exception. https://www.acas.org.uk/deductions-from-pay-and-wages
Any deduction from final pay should be clearly identified on the employee's payslip. The employee should be told what the deduction is for and, where appropriate, how the amount has been calculated. Acas also confirms that final pay may include deductions for training courses where the necessary agreement exists. https://www.acas.org.uk/final-pay-when-someone-leaves-a-job
Where an employee disputes the deduction or repayment amount, the organisation should consider the issue carefully and seek to resolve any disagreement appropriately. An incorrect deduction can potentially lead to an unlawful deduction from wages or breach of contract claim, so employers should seek appropriate advice where the contractual position or legal basis for recovery is unclear. https://www.acas.org.uk/deductions-from-pay-and-wages