Deductions and Repayment Clauses in Contracts of Employment

Posted in : Essential Guide to Employment Contracts on 12 September 2017
Kiera Lee
Mills Selig
Issues covered:

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

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This article is correct at 12/09/2017

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Kiera Lee
Mills Selig

The main content of this article was provided by Kiera Lee. Contact telephone number is 028 9024 3878 or email

View all articles by Kiera Lee