Deductions and Repayment Clauses in Contracts of Employment

Repayment and deductions clauses are useful tools for employers. They can be used to claw back training costs and other debts, as a disciplinary sanction, an incentive to stay in employment for longer or as a deterrent to breaching the contract of employment. There are some considerations when drafting these clauses to ensure they are enforceable.

Making a deduction

Employers rarely bring proceedings against an employee for monies owed or damages for breach of contract as it is often not commercially sensible due to the cost involved, the employee’s ability to pay and employers may not wish damage employee relations by having the reputation of pursuing employees for losses. Deductions from