HR Hub

Repayment clauses

A new guide to dealing with repayment clauses has been included in the Knowledge section.

Employers often put provisions in contracts of employment requiring an employee to repay sums which it has spent on behalf of that employee, e.g. a requirement to repay the costs of a training course if the employee leaves their employment. Such repayment/clawback clauses are perfectly lawful and enforceable - provided they are reasonable and do not operate in restraint of trade.

Our guide covers:

  • what constitutes a repayment or clawback clause
  • what can be repaid via such a clause
  • whether such clauses are actually enforceable in law
  • some employment cases on repayment clauses
  • some drafting tips to consider if you want to use such a clause, and
  • how to go about enforcing such a clause