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Repaying fees after leaving a company

Repaying fees after leaving a company

One of our employees has recently left our company.

In accordance with their contract, they must repay £x of professional training fees within 30 days of their leave date.

The employee understands this, but has shown no inclination of paying ... yet ....

Is there some get out clause that I may not be aware of ?

If they offer to pay us £1 week does this make us taking leagal action difficult.

Can I inform their new employer of this situation (as they are in a position of trust).

Basically, I would like to understand recent simialr cases.

Alan

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15th Aug 2007 14:50

Alan,

The question that the county court would ask if can this person pay the debt? Presumably if you have invested £10k they must be earning a reasonable salary - and more from a new employer - so an offer of £1 a week would be unacceptable. Perhaps the new employer might grant them a loan as they will be getting the benefit of the training?

I wouldn't give up - the county court isn't particularly expensive or complicated when you have documented evidence of the debt.

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14th Aug 2007 13:30

I understand that you can seek to reclaim such monies via the small claims court.However there are costs associated with such a process, not to mention management time involved. Therefore I think you need to take a pragmatic approach to whether or not this is commercially viable. I'm assuming that your contract allows you to deduct such monies from final wages?

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14th Aug 2007 13:44

I would suggest you make an addition to the agreement that any recovery will be made from the final salary. That way, you will be sure to recoup most of your expenditure.

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14th Aug 2007 14:52

Alan,

We had a similar case last year - as the course was an MBA the fees were much more than we could recover from the final salary. We gave the person a date by which we required payment - like you we heard nothing and I sent a polite reminder. Somewhat to my surprise we received a cheque for the full amount.
I don't think you can involve the new employer but wouldn't give up too quickly.

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By Anonymous
14th Aug 2007 16:13

Thanks for the comments.

The fees total almost £10k and as such were greater than the final salary payment.

This will also rule out the small claims court.

Although we don't want to waste time / money, it is too much to simply leave.

I was just wondering what the effect would be of the ex employee offered to pay a nimonal amount each month ?

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