Can my employer recover training costs if I resign?

Offer letter says you must repay 'training costs' if you quit? Learn how to ask for proof, a pro-rata reduction and a fair cap before you sign.

The risky clause

If the Employee resigns within 24 months, the Employee shall repay all training and onboarding costs as determined by the Company.

Why it is dangerous

'As determined by the Company' lets the employer name any number later. Reasonable recovery of real, documented costs is more defensible than a lump sum. A fair clause lists what counts as cost and shrinks each month you stay. Under Section 74 of the Indian Contract Act courts look for reasonable compensation. This is general information, not legal advice.

Safer clause to propose

If the Employee resigns within 12 months, the Employee shall repay only the actual external training fees paid by the Company, supported by invoices, reduced by 1/12 for each completed month.

Message to send

Hi [HR Name],

Could the training cost clause list the exact programme fees and reduce proportionally with each month served? I would like to see the invoice basis before signing. Thanks, [Your Name]

Frequently asked questions

Can a company ask me to repay salary paid during training?

Only if the contract clearly says so, and even then the amount should be reasonable. Ask for the clause to be limited to documented external fees.

How can I reduce my training bond?

Ask for a shorter period, a pro-rata reduction, a cap, and proof of actual costs before signing.

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