Repayment of training costs

Mark Minns, 2 November 2009

In MBI UK Ltd v Quigley the EAT considered the question of when, if at all, an employer would be able to recoup the costs of training given during an employee's probationary period.

The employer in the case was held to have made an unlawful deduction from the employee's wages when it tried to rely on a repayment clause in the employee's contract. The clause purported to entitle the employer to deduct "a sum equivalent but not exceeding £500" to cover training costs provided by the employer during the employee's probationary period.

The EAT (upholding the tribunals decision) found that the "conventional induction" undergone by the employee and which lasted 1.5 days did not amount to the type of training contemplated by the clause.

However, the EAT didn’t rule out in principle the operation of repayment of training costs clauses for training costs properly incurred during the probationary period.

However, employers should note that it will be quite difficult to demonstrate in practice the cost (or value) of training said to have been given during the course of probationary period and therefore, consideration should be given to this point when drafting such a clause.

MBI UK Ltd v Quigley UKEAT 0061/08