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  • Frequently Asked Employment Questions - Can we require training costs to be repaid?
    Yes - most employers operate their "claw back on training costs" rule on a sliding scale for either one or two years after the training has been completed, i.e. the sooner an employee leaves, the greater the amount they are expected to pay back. So, assuming you have a two year tie-in, any sum owed will reduce by 1/24th for each complete month that they remain in your employment. Equally, if you only require an employee to stay for a year, it will be 1/12th per complete month. For short training courses, it's...
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  • Frequently Asked Employment Questions - May we recover an accidental overpayment of wages?
    When the overpayment is due to a one-off mistake on your part, the amount may be deducted from the employee's next salary payment without their express written permission. This is because the provisions relating to the unlawful deduction of wages under the Employment Rights Act 1996 don't apply to an overpayment of salary. However, the position is far more complex if you've made overpayments over a long period of time, e.g. due to a payroll error, or where the overpayment was made some months ago and has only...
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  • Frequently Asked Employment Questions - How do we calculate a payment in lieu of notice?
    A payment in lieu of notice should include the salary and benefits to which the employee would have been entitled under their employment contract had they worked the notice period. It should include a sum to represent the value of any lost contractual benefits during the notice period such as private medical insurance, employer pension contributions and a car allowance. Also, be aware that the tax treatment of pay in lieu of notice no longer depends on whether there's a payment in lieu of notice clause in the...
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  • Frequently Asked Employment Questions - What can we do if an employee resigns but refuses to work out their full notice period?
    An employee who resigns and refuses to work their full notice period is technically acting in breach of contract (unless you have acted in such a way that you have fundamentally breached their employment contract, entitling them to resign immediately and claim constructive dismissal). You can, in theory, sue the employee for damages for breach of contract in the civil courts. In practice, however, this is often not financially worthwhile. You would have to show that your business had suffered a quantifiable...
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  • Frequently Asked Employment Questions - How do we prevent dodgy expense claims?
    There are several things you can do. The first is to create a clear policy on company expenses, which sets out: (1) what can be claimed; (2) how they should be submitted and timeframes for doing so; (3) upper limits for claims, e.g. for hotel bills and meal costs; and (4) any restrictions, e.g. on alcohol and in-room entertainment. However, you may need some flexibility on your restrictions as they won't be appropriate if the expenses are for entertaining clients. Another effective way of tightening up on claims...
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