Clawing back training costs when a trainee leaves

A practice can recover tuition and exam fees from a trainee who leaves, but only under a clear written repayment agreement signed before the costs are incurred, and only within the limits of employment law. Where the training is a requirement of the job, as it usually is for a trainee accountant, any clawback taken from pay counts against the trainee’s minimum wage pay, and an apprentice in England cannot be asked to contribute to eligible training costs at all.

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Can a practice make a trainee repay training costs at all?

Yes, in principle. Many firms fund a trainee through AAT, ACCA, ICAEW or CTA exams and want some of that money back if the trainee leaves soon after qualifying. Nothing in employment law bans a repayment agreement, but three sets of rules shape what the firm can actually recover:

The rules on deductions from wages. Section 13 of the Employment Rights Act 1996 says an employer must not make a deduction from a worker’s wages unless it is required or authorised by statute or by a relevant provision of the worker’s contract, or the worker has previously agreed to it in writing.
The minimum wage rules. A deduction or repayment for training the job requires reduces pay for minimum wage purposes.
The apprenticeship funding rules, where the trainee is on a funded apprenticeship in England.

Section 13 is strict about timing. A contract term only authorises a deduction if the worker was given a copy of the written term, or was told in writing about its existence and effect, before the deduction is made. Section 13(5) and 13(6) add that a variation or a written consent cannot authorise a deduction for conduct or any other event that happened before the variation or consent took effect. So a firm cannot introduce a clawback clause after the trainee has handed in their notice and rely on it for that departure.

The written statement of employment particulars is relevant too. Section 1(4) of the 1996 Act requires it to state any training entitlement the employer provides, any part of that training the employer requires the worker to complete, and any other required training the employer will not pay for. A firm that funds exams should describe that support in the statement and cross refer to the separate training agreement.

Why does the minimum wage limit what can be clawed back?

The government guidance on calculating the minimum wage deals with training costs directly. If training is a requirement of the employment or is imposed by the employer, any charge to the worker, whether a deduction or an unreimbursed payment, always reduces the worker’s pay for minimum wage purposes. The same applies to examination and assessment costs that are connected with the employment or required by the employer. It makes no difference whether the deduction is taken when the training happens or from final pay when the worker leaves.

The guidance contrasts this with training the worker chooses for their own development. Its example is an employee who asks the employer to fund a degree that is not a requirement of the job, signs an agreement to repay on leaving, and then resigns. A deduction from final pay under that agreement does not reduce minimum wage pay, because both the course and the departure were the worker’s voluntary choices. The guidance then adds that if the training had been a requirement of the employment, the deduction would reduce minimum wage pay whether or not a clause was in the contract.

For most trainee accountants the qualification is the point of the role, so the firm should assume the training is required. The practical result is that the clawback cannot take final pay below the minimum wage for that pay reference period. From April 2026 the National Living Wage for workers aged 21 and over is £12.71 an hour, and the apprentice rate is £8 an hour.

The guidance does not spell out how a repayment the former trainee makes after their last pay reference period should be treated. Because it says any charge for required training reduces minimum wage pay, a firm planning to invoice a former trainee for required training should take employment law advice rather than assume the payment falls outside the rules. Our page on deductions that breach the minimum wage covers the wider rules on deductions.

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Are apprentices treated differently?

Yes. Under the apprenticeship funding rules for 2026 to 2027, which apply to apprenticeships in England starting on or after 1 August 2026, paragraph 220 says that neither the training provider nor the employer may ask the apprentice to contribute financially to the eligible costs of training or assessment. The rule applies whether the apprentice completes successfully or leaves the programme early, including where they leave the employer. The training plan or contract for services must contain a statement that the apprentice will not be asked to contribute.

So a clawback clause covering funded apprenticeship training and assessment cannot be used. The rules list student membership fees required by professional bodies as costs that are not eligible for funding, so the paragraph 220 bar is not framed around them, but the minimum wage rules still apply to any deduction for them. Apprenticeships that started before 1 August 2026 follow the rules for their own funding year. Our page on apprentices in accountancy practices explains the funding routes.

How should the repayment agreement be drafted?

A clear, separate training agreement signed before each course or exam sitting is easier to rely on than a general sentence in the contract. It should cover:

What is covered. List tuition, exam entry, resit fees, course materials and any professional body fees the firm pays. State whether paid study leave is included; many firms leave salary out.
The actual cost. Tie repayment to the sums the firm has actually paid, with a running record the trainee can see, rather than a fixed figure that may exceed the real cost.
A sliding scale. For example, full repayment if the trainee leaves within 12 months of the final exam, half within 24 months, and nothing after that.
Triggers. Usually resignation or dismissal for misconduct. Say expressly whether redundancy, dismissal for other reasons or failure to pass exams triggers repayment.
The deduction authority. Written agreement that the sum may be deducted from final pay, as section 13 requires, with any balance repayable as a debt.
A minimum wage cap. A term that no deduction will take pay for any pay reference period below the minimum wage, so payroll has an instruction to follow.

Keep the repayment amount proportionate. A clause that recovers no more than the firm spent, reducing over time, is easier to explain to the trainee and to defend if they dispute it. Our page on restrictive covenants for practice staff deals with the separate question of protecting clients when staff leave.

How does the minimum wage test work on final pay?

Illustration only. A trainee aged 23 is paid £13.00 an hour and works 150 hours in their final monthly pay reference period, earning £1,950. Their training agreement allows the firm to recover £2,400 of exam and tuition fees for required training.

Step	Amount
Pay for the final month (150 hours at £13.00)	£1,950.00
Minimum wage for the same hours (150 at £12.71)	£1,906.50
Headroom above the minimum wage	£43.50
Largest training deduction that keeps pay at the minimum wage	£43.50

Deducting the full £2,400 would leave the trainee underpaid for that month by £2,356.50. The firm can deduct no more than £43.50 from pay and must take advice before pursuing the rest. In practice, clawback clauses are most effective for staff paid well above the minimum wage. If the trainee were paid £20.00 an hour for the same hours, the headroom would be £1,093.50.

What happens if the deduction is wrong?

Two separate claims can follow. If the deduction was not properly authorised under section 13, the worker can complain to an employment tribunal under section 23 of the 1996 Act. The time limit for presenting that complaint is six months from the date of the payment from which the deduction was made, following an amendment by the Employment Rights Act 2025 that took effect on 1 October 2026; it was previously three months. Separately, if the deduction took pay below the minimum wage, the firm faces arrears and enforcement action. Our page on HMRC minimum wage investigations explains how those reviews run.

Is the funding itself taxable for the trainee?

Usually not. Work related training paid for by the employer is normally covered by the exemption in section 250 of the Income Tax (Earnings and Pensions) Act 2003, so a firm paying exam and tuition fees for a trainee does not normally create a taxable benefit. Our page on the employer funded training exemption explains the conditions.

What mistakes do practices make?

Relying on a clause added to the contract after the trainee has resigned.
Deducting the full clawback from final pay without checking the minimum wage for that pay period.
Using a clawback clause for a funded apprentice in England.
Claiming a fixed sum that exceeds the fees actually paid.
Not saying whether redundancy or failed exams trigger repayment, leaving the clause open to dispute.
Assuming the trainee’s signature makes a deduction safe for minimum wage purposes. The guidance says it does not where the training is required.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.