Apprentice resigned after study leave refused: unlawful deduction claim succeeds
A junior accountant resigned after her employer refused paid study leave and later deducted £1,472 from her wages for training costs. The tribunal upheld her unlawful deduction claim but dismissed her constructive unfair dismissal claim.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #apprenticeship
- #unlawful-deduction
- #training-costs
- #study-leave
- #small-business
Key facts
- The claimant was employed as a junior accountant from 2 September 2019 and began an accountancy apprenticeship on 9 April 2021.
- The apprenticeship agreement required the respondent to release the claimant for 20% of working hours for off-the-job training and to compensate for out-of-hours training.
- The claimant completed all 330 hours of training in the evenings and did not request pay or time off in lieu during employment.
- On 25 August 2021, the claimant asked for one day per week paid study leave, which was refused; instead, she was offered two days unpaid leave.
- The claimant resigned on 9 September 2021, effective 8 October 2021.
- The respondent deducted £1,472.25 from the claimant's final two salary payments for apprenticeship training costs.
Timeline
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Employment started
Claimant began employment as a junior accountant.
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Apprenticeship began
Claimant started a 31-month accountancy apprenticeship with the respondent.
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Request for study leave
Claimant asked line manager Neil Williams for one day per week paid study leave.
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Discussion with Mrs Straw
Claimant discussed her request with Mrs Straw, who later offered two days unpaid leave.
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Offer of unpaid leave
Mrs Straw granted two days unpaid leave and permission to study in the office when not busy.
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Resignation
Claimant tendered her resignation.
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Penultimate salary deduction
Respondent deducted £1,072.25 from claimant's September salary.
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Employment ended
Claimant's employment ended.
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Final salary deduction
Respondent deducted £400 from claimant's October salary.
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Final hearing
Tribunal heard the case remotely via CVP.
The legal issue
The tribunal had to decide whether the employer's failure to provide paid study leave and its deduction of training costs from wages amounted to a fundamental breach of contract, and whether the deductions were lawful.
The outcome
The tribunal dismissed the claim of constructive unfair dismissal, finding that the employer's conduct did not repudiate the contract or destroy trust and confidence. However, it upheld the claim for unlawful deduction of wages.
- The employer was ordered to repay £1,472.25 deducted from the claimant's final two salary payments for apprenticeship training costs.
- No compensation was awarded for the alleged failure to pay for out-of-hours study time, as the claimant had not requested payment during employment.
Lessons & takeaways
- Employers cannot deduct apprenticeship training costs from wages unless there is a clear contractual right or the employee has agreed in writing.
- Refusing paid study leave does not automatically amount to constructive dismissal if the employer offers a reasonable alternative, such as unpaid leave.
- Employees who work extra hours without requesting payment may find it difficult to later claim unlawful deduction for those hours.
This case highlights the risks employers face when handling apprenticeship agreements, particularly around study leave and training costs. The claimant, a junior accountant, began an apprenticeship requiring 20% off-the-job training. She completed all 330 hours in her own time, but when she asked for paid study leave, her employer refused and offered only unpaid leave. She resigned shortly after.
What the tribunal decided
The tribunal found that the employer's refusal of paid study leave did not breach the implied term of trust and confidence. The employer had offered a reasonable alternative (unpaid leave) and the claimant had not previously requested payment for out-of-hours study. Therefore, her resignation was not a constructive dismissal.
However, the employer's decision to deduct £1,472.25 from her final wages for apprenticeship training costs was unlawful. There was no contractual right or written agreement allowing such deductions. The tribunal ordered the full amount to be repaid.
What employers should learn
This case is a reminder that apprenticeship funding rules and employment contracts must be carefully followed. Deducting training costs from wages without clear authorisation is a breach of the Employment Rights Act 1996. Employers should ensure any cost recovery is explicitly agreed in writing.
For employees, the case shows that resigning over a dispute about study leave may not succeed as constructive dismissal if the employer offers a reasonable compromise. However, unlawful deductions from wages are a clear ground for a claim, regardless of the overall employment relationship.
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