Human capital provider Capita faces legal action over demands for training fees from ex-employees

Capita has a policy of insisting that graduates carry out three or four months training, for which they are not paid, before they are put forward for consultancy work with clients. Trainees must then agree to work for the company for two years or be liable to repay up to £20,000 in training fees.

However, this is now set to be challenged by a legal team who are seeking to raise the £50,000 legal fees via a crowdfunding campaign. The challenge states that charging such high fees acted as an “unlawful restraint of trade” as they did not legitimately reflect the cost of the training the employer had provided workers.

The company wrote an obligation into contracts to repay fees right up until the last day of a two-year commitment which the employees say does not represent a balance between the interests of young graduates and the business interests of the employer.  This case may result in businesses having to evaluate the practice of recovering training fees and we will watch with interest.

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