Navigating Clawback Policies When Moving Firm
I’ve covered this topic in past videos and content when discussing training contracts, but I thought it deserved its own independent discussion. It's a critical issue that can often be a deal breaker if you’re considering a move and it comes up in conversation every week.
Now, if you’re on a Level 7 Apprentice scheme, this doesn't really apply to you. But if you’re currently on a commercial study scheme and thinking about moving, then take note.
Understanding Clawback Policies
Let's start at the beginning. When you join a firm, either in your employment contract or a separate training contract, there will often be a section referred to as clawback. This essentially refers to the amount the firm will reclaim from you should you decide to leave.
Clawback policies are usually implemented if you leave during the qualification period or within 6 to 12 months after qualification. Although, in some cases, I have seen this extended up to 24 months.
The costs subject to clawback usually include courses, exams, and materials. However, I've encountered instances where firms have tried to reclaim loss of earnings for study days.
What to Do if You Have a Clawback Policy
If you do have a clawback policy, don’t worry. In 90% of cases, the firm you’re joining will cover this cost for you, and it can be negotiated during the offer process.
This is one of those situations where you’ll be thankful to have a recruiter on your side to guide you through the process. While it might be your first time dealing with this, I’ve handled these situations probably 50+ times now.
Having a recruiter can make a significant difference in negotiating terms and ensuring you transition smoothly without any unexpected financial burdens.
Final Thoughts
Moving firms can be a daunting process, especially when clawback policies are involved. However, with the right support and preparation, you can navigate this challenge effectively. Always review your contracts thoroughly and don't hesitate to negotiate terms that will benefit you in the long run. And remember, having an experienced recruiter can provide invaluable guidance and support throughout this process.
If you have any questions or need further clarification on clawback policies or training contracts, feel free to reach out. I'm here to help you make informed decisions about your career path.
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