The Company recently paid for training for an employee who has just handed in his notice. The employee’s contract provides that we can seek repayment of all training fees incurred if he leaves now – can we enforce this and, if so, how?Posted in : First Tuesday Q&A ROI on 6 February 2018
Repayment clauses can be enforceable in Ireland. Subject to some exceptions, the Payment of Wages Act 1991 generally allows for deductions from wages in circumstances where the deduction is specifically authorised by the employment contract (as it is here). Among other requirements under the Payments of Wages Act, the amount of any deduction must be fair and reasonable and no greater than the actual cost to the company. The employer must also give notice of the deduction. Whether the employer actually seeks repayment of the full amount of fees or whether they wish to seek a pro-rated amount may feed into any analysis of whether any potential deduction of wages is "fair and reasonable". In
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