What to do if employers seek to recover training fees

Posted on October 19, 2026

If you have trained whilst at work and avoided the tradition university route, achieved professional qualifications or benefitted from employer-funded training, do you have to replay the fees paid by your employer if you leave soon after qualification? It is a question that worries workers, and the answer is not always straightforward.

Can an employer demand the repayment of training fees?

Employers cannot simply deduct money from wages or demand repayment of training fees without a contractual right to do so, and recent court decisions show that poorly drafted repayment clauses may not always be enforceable.

In the Geeks v Watts case, it was noted that a stringent employment contract and repayment clause effectively turned the low-paid trainee retrospectively into something close to an unpaid intern during his time with the IT firm.

Alan Lewis, Partner and Head of Employment at Pearson Solicitors said:

“An obligation to repay training costs may be unlawful on the basis that it could be a restraint of trade, as once training is complete employers may move jobs for a variety of reasons. In this recent case it was noted that the young employee was paid a salary of just £18,000 and was being asked to repay over £8,000, this would have made him no more than an unpaid intern after his years with the firm.”

In the Geeks v Watts case, The Court of Appeal held the repayment clause was an unreasonable restraint of trade and unenforceable. With such onerous repayments it was noted that the financial disincentive to leave is enough to bring the clause within the orbit of restraint of trade principles, and under scrutiny for reasonableness.

Training Repayment Agreement or Clawback Clause

It is increasingly common for employers to include "Training Repayment Agreements" or "Clawback Clauses" in employment contracts. These clauses usually state that if an employee resigns within a certain period after completing their training, they must repay some or all of the costs.

While many employees assume these clauses are automatically enforceable, the legal position is more nuanced, and many operate on a reasonable sliding scale from 12 months employment post qualification.

“Everything depends on the wording of the contract and whether the clause is drafted reasonably, or as was the case here, whether it is overly harsh and punitive” said Alan.

“In cases where an employer makes deductions from final wages without contractual authority, employees may also have claims for unlawful deductions from wages under the Employment Rights Act 1996 and an employer risks facing an Employment Tribunal claim for unlawful deduction from wages.”

What should employees check?

If your employer demands repayment after you leave, you should carefully examine:

your employment contract
any separate training agreement
when the agreement was signed
exactly what costs are included
whether a sliding repayment scale applies
whether the employer has correctly calculated the amount

Early legal advice can help establish whether the repayment clause is enforceable and whether the employer has acted lawfully and an employment solicitor can review your contract, advise on your legal position, negotiate with your former employer and, where appropriate, represent you in tribunal or court proceedings.

“Employer-funded education can provide valuable career opportunities, but repayment clauses should never be accepted at face value. While many agreements are enforceable, others may be too broad, poorly drafted or operate as unlawful penalties and no employee should be fearful of progressing their career at the cost of confusion,” said Alan.

How can we help?

Pearson Employment Law Solicitors have extensive experience of assisting employees, self-employed contractors and employers in the area of recovery of training costs whether that be ensuring recovery for the employer or resisting action by an employer to recover fees from employees.

For legal advice on employment and employee rights in relation to training agreements contact our employment law solicitors on 0161 785 3500 or email enquiries@pearsonlegal.co.uk.

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.