11 August 2025
By Joseph Kelly, Kelly Workplace Lawyers
I have just left my job… Do I need to repay my training costs to my employer?
So while you were working your employer sent you on an expensive training course – snaps for you!
But now you’ve found another job and your employer wants you to pay back the cost of the training. But can they ever do that???
The answer is:
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Yes;
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No; and
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Maybe
Yes
You will have to repay your training costs if, before you started the training, you and your employer agreed that you would have to repay the cost if you left. HOWEVER:
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The Agreement must be in writing;
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The training must be for your benefit; and
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The amount you have to repay must be reasonable and must be clearly stated in the agreement.
What’s “reasonable”? The repayment should usually reduce the longer you stay after the training, recognising that your employer benefits from your improved skills. For example, if you complete a $5,000 course and leave just a month later, it may be reasonable to repay most of the cost. But if you leave three years later, demanding the full $5,000 back is far less likely to be enforceable.
No
You will not have to repay your training costs if there was no written agreement or if the agreement was vague or unclear. Courts don’t look kindly on broad, catch-all clauses that don’t spell out the costs or repayment terms.
In a recent case we ran, the agreement simply said that the employee would have to repay all training costs if they left. Several years after being trained, the employee left and the employer demanded $20,000 for training costs. We defended the employee against the claim because:
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The employer had never mentioned an amount for the training until after the employee left; and
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The employer had already received several years of benefit from the training, so repayment of the full cost was a penalty and therefore not payable.
SPOILER ALERT! We won the case and recovered $40,000 in legal costs for our client. Win!!
Maybe
Each case is different, and each employment contract is different. It often comes down to whether the repayment terms were fair, specific, and proportionate. Some agreements are drafted carefully and will stand up in court, while others are so vague or one-sided that they collapse under scrutiny.
If in doubt, contact KWL and we can let you know what your legal rights are. It’s better to get advice before paying back thousands of dollars that you might not legally owe.
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