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
Costs associated with training are sometimes deducted from an employee’s pay or paid by employees in a number of ways.
If the training is a requirement of the employment or imposed by the employer, any charge made – whether a deduction or unreimbursed payment – will always reduce a worker’s pay for minimum wage purposes.
For more information visit GOV.UK – Calculating the minimum wage