Training Costs Agreement by Business Gateway
The Business Gateway Training Costs Agreement sets out the terms under which an employer funds an employee’s training and the circumstances in which the employee must repay those costs. It protects the employer’s investment in staff development while ensuring transparency and mutual understanding about repayment obligations if employment ends shortly after the training.
TRAINING COSTS AGREEMENT
THIS AGREEMENT is dated [effective date].
AND IS MADE BETWEEN:-
[employee name] ("the Employee"); and
[company name] ("the Employer").
The Employee is employed by the Employer as a [employee job title].
The Employer has booked a place for the Employee in relation to training and development in [course subject] with [training provider name] (“the Course”).
IT IS HEREBY AGREED AND DECLARED THAT
In consideration of the Employer meeting the costs of the Course which are set out in the Schedule to this Agreement (“the Costs”), the Employee undertakes to reimburse to the Employer the Costs if:
he/she voluntarily withdraws from or terminates the Course early without the Employer’s prior written consent;
he/she is dismissed or otherwise compulsorily discharged from the Course, unless the dismissal or discharge arises out of the discontinuance generally of the Course;
he/she resigns from the employment of the Employer either prior to completion of the Course or within twelve months after the end of the course, except that in the latter case, the amount which would otherwise be due to the Employer shall be reduced by 1/12th part for each complete calendar month after the end of the Course during which the Employee remains employed by the Employer.
To the extent permitted by law, the Employee agrees that the Employer may deduct a sum equal to the whole or part of the Costs due in accordance with Clause 1(iii) under the terms of this Agreement from his/her wages (as defined in Section 27 of the Employment Rights Act 1996) or from any other allowances, expenses or other payments due to the Employee.
The amount due to the Employer under the terms of this Agreement is a genuine attempt by the Employer to assess its loss as a result of the termination of the Employee’s employment and takes into account the derived benefit to the Employer. This Agreement is not intended to act as a penalty on the Employee upon termination of his/her agreement.
SIGNED:
[employee name]
[manager name]
for and on behalf of [company name].
NB. This Agreement must be signed by both parties prior to the commencement of the Course.
SCHEDULE OF COSTS
(Insert details of the costs to be incurred by the Employer in relation to the Course e.g. the Course fees, the costs of books or other materials, any other expenses paid in connection with the Course).
Course Fees: [course fees]
Cost of books/materials (if applicable): [cost of books/materials]
Any other expenses: [other expenses]
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This version is drafted for England & Wales. Scotland and Northern Ireland differ on some points — for example notice periods and tribunal procedure. Tell GitLaw where you hire and it adjusts the draft.
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