Returning employer co-investments for changing employer

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This topic contains 5 replies, has 3 voices, and was last updated by  Martin West 2 weeks, 1 day ago.

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  • Vicky
    Participant

    We tend to collect the employer co-investment split into two installments one at year one, other at year two, nothing 3rd year (three year course). We have a number of apprentices moving employers and I believe I need to repay amount of the co-investment that they have paid above that to match the funding received at the point they move employer. My finance team are asking if we have to, and where it states it in the rules. I’ve looked through and all I can see is a reference to reconciling co-investment.
    Am I correct that we must return the excess coinvestment and please can anyone point me to the appropriate place in the guidance. Thanks

     
    #469184

    Vicky
    Participant

    Sorry I should have added I’m aware of these two points below, but we do have an clause in our agreement saying we can hold the employer co-investment in cases of withdrawal or change in circumstances. So does this class as ‘agree with the employer any reimbursement’

    P286 When a change of circumstance results in over-payment of funds from an
    employer’s apprenticeship service account or government-employer co-investment,
    any over-payment must be repaid by you. You must follow the arrangements set out
    in your agreement with the employer for any over-payment by the employer.

    P287 You must agree with the employer any reimbursement for employer co-investment
    made for learning paid for, but not undertaken; or learning delivered, but not yet
    paid up to the employee’s leave date, or the date of their break in learning, as
    needed.

     
    #469186

    Martin West
    Participant

    Hi Vicky,
    In the funding rules the unwritten definitions of ‘must’ and ‘should’ are compulsory and optional.

    P287 You must agree with the employer any reimbursement for employer co-investment made for learning paid for, but not undertaken; or learning delivered, but not yet paid up to the employee’s leave date, or the date of their break in learning, as needed.
    HTH

     
    #469217

    steveh
    Participant

    Yes, it appears to be an audit test as part of the employer contribution section as well, to reinforce that *must*…

     
    #469237

    Vicky
    Participant

    Thank you, but where do we stand if the original negotiated price was above the funding cap? So one particular learner is on a framework, and the funding cap was halved so we therefore have to charge £1500 employer contribution, whereas the coinvestment amount would only have been £600. If we return all the additional money above the proportioned coinvestment we will be significantly out of pocket, as the funding cap alone does not cover the costs of the course to this point?

     
    #469295

    Martin West
    Participant

    Hi Vicky,
    I would assume you would return any unused portion above the CAP and Co-investment to the first employer and that you have agreed that the new employer to pay their portion above the CAP and co-investment if still applicable, then you will not be out of pocket.
    HTH

     
    #469305
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