Deducting training costs from final pay

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.

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 un-reimbursed payment – will always reduce a worker’s pay for minimum wage purposes.

For more information visit GOV.UK – Calculating the minimum wage