Bond Repayment? Taken from Gross or Net pay?
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Bond Repayment? Taken from Gross or Net pay?
My employer forced me to sign a bond for my Trg. I've resigned in the bond period and have negotiated my bond repayment, but they now want to take it from my NET pay rather than my GROSS pay, which in real terms is going to cost me an extra £360. Do I have the right to ask them to take it from gross? The only person benefitting otherwise is HMRC?
Bond Repayment
Unfortunately it comes out of net pay. However, HMRC will return the tax if you fill out a tax form. Effectively the bond repayment reduces your taxable income for the relevant tax year. I'm not sure whether it's a current tax year tax or whether it's the tax year in which the bond started. You might need to ask someone like AlR or a tax professional.
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Repayment of a training bond is not enforceable by law.
Might be prudent to pay it if you think ex-employer can be bothered to cause a stir but I assume that with a resignation there does not follow a reference?
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Might be prudent to pay it if you think ex-employer can be bothered to cause a stir but I assume that with a resignation there does not follow a reference?
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Nemo Me Impune Lacessit
Join Date: Jun 2004
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Repayment of a training bond is not enforceable by law.
Tell them to ram it, do some research, bonds might be illegal?????
If properly drawn up then a training bond is just a legally enforceable contract, as long as it is a reasonable estimate of actual costs to the company and not inflated in any way or includes items that the court decides should be costs to the employer. I think you will find there is legal precedent for both sides of this old chestnut!
Suggest a bit of caution here, it is never a wise move in the (very small) world of aviation to deliberately default on a bond, some companies will chase you, others will spread the word.
