Can I break training contract if employer missed payments?

Employer committed to fund study but has paid only part of the agreed amount; now I want to start a new job

Company sought one-year work commitment from worker in exchange for part-funding their studies but failed to fund the course as agreed. Photograph: iStock
Company sought one-year work commitment from worker in exchange for part-funding their studies but failed to fund the course as agreed. Photograph: iStock

I started working for a company three years ago. During that time, I was enrolled in a part-time postgraduate course. I subsequently availed of the company training offer and signed a training bond that if I left the business within one year of the end of the course, I would be liable to repay the training bond in full.

The company did pay the first two instalments of the fees after a bit of cajoling. However, they never paid the third instalment which I requested in writing for them to do. I paid the final instalment and in total covered 50 per cent of the cost of the course while the agreement stated the company was to pay 70 per cent.

I am preparing to take up a new job and would like to know where I stand in terms of repayment. I do not wish to short-change my former employer. However, I believe they have broken the agreement on their side by failing to pay the amount that they agreed to and as such have breached the contract. Ms AM

Contracts of the sort that you entered are reasonably common in the modern workplace, especially given the focus for both parties on the importance of continuous professional development. What is a little alarming is that the employer would not honour the commitment they made.

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Where this leaves you is very much down to the wording of any agreement you signed with the company, and also, possibly, how long it is since you completed the training programme.

You had already signed up to this postgraduate course before the company became involved but it clearly decided that the course matter was relevant to your employment and agreed to part-fund the programme. These courses can be money-spinners for the institutions concerned and I have no doubt that the financial support offered by the employer was welcome.

In return for that investment, the company not unreasonably was looking to lock you into a minimum period of service so that they get some benefit. So far, so good.

But these contracts only work to the extent that both sides operate in good faith.

You say the employer had agreed to fund 70 per cent of the cost of the course: in the event, they covered only half the cost. And that was only after, as you put it, “a bit of cajoling”.

And they have failed to fund the final tranche of fees despite a subsequent written request to remind them that they had failed to pay.

The first thing that comes to my mind is whether this is a company anyone would want to work for in the first place. When it comes to payment, the balance of power in a workplace is necessarily uneven. The employer has the funds – or, if they have taken on the commitment, they should ensure they have – and the employee has to work on the basis that the company will honour the financial terms of any contract.

There is nothing worse, or more inclined to demotivate staff, than to have to go chasing money that an employer has agreed to pay and which is outstanding. And no “cajoling” should be required.

If the tables were to be turned, you would have a scenario where the employer would be content for the worker not to turn up for close to one-third of their work hours without explanation and still be comfortable to pay them their full salary. That’s clearly a nonsense and so is the situation in which you found yourself.

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I expect the contract or agreement that you signed will provide that the employer pays their contribution and you agree to remain in their employment for at least one year after qualifying. In that case, the employer’s failure to meet their part of the agreement is a breach of contract.

Whether, of itself, that entitles you to simply walk out on the contract is impossible to say without sight of the contract itself – and possibly a legal opinion on the same. There may be clauses covering any such breach and what process should be undertaken to resolve it. HR departments have a habit of writing these things in a manner that is fairly watertight for the employer.

Can the employer hold you to the one year of service? Ultimately, I doubt it. And even if they could, it seems all goodwill has been frittered away by their conduct to this point. But they may try to drag you through a process before waving any white flag and that could cost you the current opportunity.

I think you should certainly check your contract (how many of us do that when we are being offered money up front?) and then, assuming you are not bound by dispute clauses, write a clear letter explaining that you consider the contract breached because of their failure to honour their funding commitment, leaving you free to accept this job offer.

At worst, I suspect you may struggle for a meaningful reference but if you already have this other job sorted, that may be a moot point.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street Dublin 2, or by email to dominic.coyle@irishtimes.com with a contact phone number. This column is a reader service and is not intended to replace professional advice