When employers can't reclaim training costs | What You Need To Know
- Trish Attah
- 1 hour ago
- 2 min read
A recent Court of Appeal decision is a useful reminder for employers to check whether training cost repayment clauses in employment contracts are fair, proportionate and enforceable.
The key message is simple: if a clause goes further than necessary to protect a genuine business interest, a court may strike it out entirely.
If you're asking yourself questions like "Can my employer recover training fees from me?" or "my employer wants to deduct training fees from me" or as an organisation, "can we deduct training costs from employees", then this blog is for you.
What happened?
In Watts v Geeks Limited, a trainee engineer was required to repay £8,108 in training costs if his employment ended for any reason other than redundancy. He resigned after eight months to take a higher paid role, and the employer tried to recover the full amount.
The Court of Appeal found the clause unenforceable because it went further than reasonably necessary to protect the employer’s training investment.
Why did the clause fail?
It applied too widely: the clause could have applied even where the employer was at fault.
It was not linked to competition: repayment was triggered regardless of where the employee went next.
The burden was too high: the repayment amount was significant compared with the employee’s salary.
What should employers check?
Training cost repayment clauses can still be enforceable, but they need to be carefully drafted. When reviewing contracts, consider whether the clause:
Reflects the actual cost of the training.
Repayment amount reduces over time.
Distinguish between the reasons for leaving
Protects a genuine training investment, rather than simply discouraging employees from leaving.
Remains proportionate when compared with their salary.
Key takeaway
If you use training cost repayment clauses, now is a good time to review your existing contracts. A clause that is found to be an unreasonable restraint of trade will leave you with no contractual basis on which to recover your investment.
Reviewing training cost repayment clauses today protects your business and reduces the risk of future disputes.
Prefer to watch a video?
Check out our video with our Founder talking through this case.
Useful Resources
Acas guide on deductions for training courses: https://www.acas.org.uk/final-pay-when-someone-leaves-a-job/deductions-for-training-courses
Practical guidance from Davidson Morris https://www.davidsonmorris.com/repayment-of-training-costs-clause-uk/
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Disclaimer
All information within the post is provided for guidance only; always seek your own legal advice.
The information with this post was correct at the time of publishing, July 2026 but may be subject to change.
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