Deducting training costs from final pay

This section covers deducting training costs from final pay.

Deductions from final pay to cover cost of training courses

Employers can deduct money from final pay to cover the cost of training courses the employee has attended provided that:

  • It is agreed with the employee in their contract of employment or
  • In writing before the course takes place

For example, an employee undertakes a training course and agrees to pay back the cost to the employer if they leave within 6 months.

Training deductions and the National Minimum Wage

Making a deduction from an employee's wage that takes their pay below the national minimum wage can be problematic.

It is best to seek a legal opinion before making such a deduction as the employer could be in breach of the national minimum wage.

Last updated: 01 May 2019