UK Court of Appeal Voids £8,000 Training Repayment Clause for Ex-Employee
Updated
Updated · Burges Salmon · Aug 6
UK Court of Appeal Voids £8,000 Training Repayment Clause for Ex-Employee
1 articles · Updated · Burges Salmon · Aug 6
Summary
Mr Watts, a trainee engineer paid £18,000, does not have to repay more than £8,000 in training costs after the Court of Appeal found the clause unenforceable.
The court said the repayment term was an unreasonable restraint of trade after Watts left eight months into the job for a new role paying £30,000.
Geeks Limited had sued to recover the costs under a contract that required repayment through continued service or monthly payments if he left before the debt was written off.
The ruling warns employers that training-cost clawback clauses must be narrowly drafted and no broader than necessary to survive legal challenge.