OUTSOURCING GIANT CAPITA BLASTED FOR CONTRACTS THAT LOCK GRADUATES IN TO JOBS THEY HATE
* LOOK! WE’VE BEEN QUOTED IN THE GUARDIAN *
Sometimes, a new job just doesn’t work out. But a growing number of graduates are finding themselves locked in to roles with firms they desperately want to leave but can’t – because they’ll be sent a bill for up to £21,000.
Their employers claim they’re clawing back money invested in flighty youngsters who couldn’t commit – but is it really okay to trap someone into a job they hate, by reminding them to expect a monster bill (payable immediately) if they leave?
We’re about to find out. Four recent graduates from UK universities are taking their employers to court over controversial ‘lock-in’ clauses which have resulted in them being chased for up to £18,000 of supposed training costs for leaving their employer after less than two years.
The graduates say many more people like them are still stuck in jobs they hate because they’re too scared to quit.
“All of these graduates are operating in a kind of tied servitude. Tied for years to a faceless behemoth, working off an inflated debt on unfair terms, on something that looks less like a legitimate training scheme, and more like a clever way of hooking in the desperate or naive.” Jolyon Maugham QC, the Good Law Project
The story first hit headlines last year, when a Graduate Fog investigation into the Capita Novus scheme led to further revelations about contracts that new starters were required to sign.
The Guardian understands that at one point Capita – which provides services ranging from electronic tagging of offenders to store card services for retailers and the BBC licence fee collection – was charging graduates as much as £21,000 to be released from their scheme.
Meanwhile, another big outsourcing firm – FDM Group – has been sending graduates bills for £18,000 payable within 14 days (!), like this one dated as recently as March 2018:
The terrifying invoice arrived with this alarming letter:
Working with the Guardian over the last six months, Graduate Fog has collected stories from around ten graduates who said they were either locked into jobs they could not afford to leave, or who had left and were now being pressured to repay huge sums that their former employer claimed had been spent on their training. Four cases were clear-cut enough to take forward to the courts.
Knowing these companies have tough lawyers who fight hard, we have also ‘lawyered up’, securing the help of the Good Law Project, thanks to its founder (and bad-ass lawyer) Jolyon Maugham. The graduates’ barrister is Sean Jones QC, and their solicitors’ firm is Crowell and Moring.
Maugham, who is now busy crowdfunding to cover the costs of the case – click here to see how it’s going – blasted Capita and FDM Group in an article for the Guardian today:
“All of these graduates are operating in a kind of tied servitude. Tied for years to a faceless behemoth, working off an inflated debt on unfair terms, on something that looks less like a legitimate training scheme, and more like a clever way of hooking in the desperate or naive.
“But among the protections the law gives to us all is the right to work and make a living how and where we choose. It’s not an absolute right; the law balances against it an employer’s right to protect its legitimate interests. But here at the Good Law Project, we want to ask the courts to weigh it on the scales against indentured service for inflated training costs on unequal terms. We hope that the high court will declare these arrangements unlawful.
“This generation is already labouring under a burden of massive student debt, insecure employment and inflated house prices. It’s time to provide proper protection against rapacious employers.”
Graduate Fog’s founder Tanya de Grunwald also slammed the firms’ conduct, saying:
“This grotesque practice needs to die, now. It is the most disturbing development I have seen in the graduate market in the eight years I’ve been campaigning for fair jobs for young people.
“No-one should have to pay such a huge a penalty to leave a job they are unhappy in. Graduates are being terrorised into staying put, or hounded for money they’re told they owe if they leave. I’ve seen just a sample of the invoices and emails being sent out, and all three firms should be ashamed. This is no way for any reputable employer to behave.”
Needless to say, Graduate Fog will be watching this case closely over the next few weeks, so stay tuned for updates.
* SHOULD LOCK-IN CLAUSES BE BANNED?
Do you know someone currently trapped in a job they can’t afford to leave – or have you quit a graduate scheme and been chased for the training costs you supposedly owe? If this is the first you’ve heard about this practice, what is your reaction? Please share your views below…
Saw this quoted in the Guardian article that referenced yourselves.
“Trainees must agree to work for two years or be liable for up to £20,000 in fees for training courses”
Sad to say that it doesn’t stop at £20,000. I currently work for FDM, contracted out to a client of theirs, and if I wanted to leave I would owe £37,000. Started out at £20,000 when I first joined the ‘Academy’, but switched onto a specialized course, and on the first day of that, I had to sign a contract to say it was being increased to £37,000.
FDM has its positives, it does open doors I otherwise wouldn’t have had access too, the pay is decent, and the support staff work hard to help the graduate consultants (finding jobs, Trainers, HR etc.). But is the training I received worth £37,000? No. And do I feel a bit trapped? Yes
A donkey could get on the FDM ‘graduate’ scheme. You should have held on for something else.
Frontline social work graduate scheme is the same. Up to £10,000 owes if you leave within the first year and ‘substantially more’ if you leave in year two. So many people feel trapped due to the agreement they signed upon joining.
Hi there, really interested to learn more about this – emailed you a few weeks ago but never heard back! Check your spam? Or try us again via the Contact Us page, then look out for a reply in the next day or two!
Thanks
Tanya
Long time no speak. It is not just the graduate schemes that are holding graduates to big money ransoms. I was enquiring about postgraduate healthcare courses as I’m looking to re-train and was quoted £23,000 for a two-year postgrad in occupational therapy. It was a similar level for diagnostic radiography. What are graduates suppost to do these days? Everything is getting to a level of expense that is out of the reach of normal people. I have a BSc and an MSc which is two-thirds completed (full scholarship for this) but both are in academic subjects which aren’t of much use in the ‘real world’. I understand why people sign up for these graduate schemes as they don’t have much other option. I feel like graduates are being taken advantage of now because the companies know how desperate we are. I feel like education and the workforce is like a two-tier system now. Those of us at the bottom are struggling to get our foot on the ladder.
I was on the FDM Training scheme – if anyone can suggest a place we can exchange experiences I feel collectively taking them to court is the way forward.
@BM
I pulled out after getting an offer at the assessment centre. What were your experiences?
QA consulting are similar to FDM. They also run a training programme with a 5 figure bill if you withdraw within x number of years.
I wonder why this website is so quiet. Surely there are other graduates who are struggling to find a good job (or any job at all)…
Could anyone advise on the result of the above story?
Ive had a similar experience at Sparta Global and feel severely trapped. My mother fell ill and instewd of asking to leave, i asked if I could be placed in London so i could stay near her. They’re now threatening me with costs of over £16000.
Hi all,
Are you being chased by your former employer for exit fees they say you owe? Or are you about to quit your scheme, but scared about being chased for the money they say you owe?
We’ve assembled a top legal team to mount a legal challenge against employers who are charging graduates large exit fees in order to leave their schemes.
If you would like to join our group of claimants, please contact me via this link as soon as possible http://bit.ly/duLICY
There is no charge to you, and you’ll have some of the UK’s best lawyers on your side.
We’re particularly keen to hear from graduates who are about to quit and want help, or who have recently quit and want help.
If you’re a former FDM-er, that’s a bonus 🙂
Thanks,
Tanya de G
(GF founder)
Is there any update on this topic?
I too am with Sparta Global. Looking to leave but trapped by the huge over inflated fees demanded as compensation for training.
Please update, I would love to know what my options are. Has there been a verdict yet whether these types of contracts are / are not enforceable in a court of law?
on reddit theres alot of bad reviews for fdm. one person was asked to pay back 16k but they got lawyers to make fdm back off. as far as i can tell fdm has not been successful in actually collecting the fees they claim you owe. id talk to a solicitor, look into your contract and decide from there
This story offers a bit more clarity: https://graduatefog.co.uk/2019/6175/graduate-exit-fees-illegal-legal-advice-fdm-sparta/
Tanya (Graduate Fog founder)
Hi all,
We’ll be providing an update very soon regarding the legal situation on exit fees. It’s not an absolute answer but the picture is becoming clearer.
In the meantime, I’m really keen to hear from:
* Graduates who are currently stuck in a role they want to leave, but can’t because their employer claims they’ll owe £1,000s
* Graduates who have recently left their scheme and are now being chased for fees their employer claims they owe
* Anyone who can supply a copy of recent (2020 or 2021) employment contract from FDM, Sparta Global, Ten10, Kubrick Group and Geeks Ltd, just to double check they are definitely still charging exit fees?
Please send here: http://bit.ly/duLICY
All info received in absolute confidence, of course.
Thanks
Tanya
Hi Tanya,
Do you think you may have an update regarding exit fees as mentioned in your post from June? I too am in a similar position with FDM and would be keen to hear about the legal situation.
Thanks.
Hi all!
We’re about to launch a campaign to ‘Stop Exit Fees By Xmas’ – more details coming soon!
In the meantime, please sign and share this petition by a graduate currently trapped at FDM. Your name will be hidden and the petition will go to Kwasi Kwarteng, the business secretary. Thanks!
https://bit.ly/3nAMrrt
Tanya