What the Employment Standards Act says about deductions
The Act limits what an employer can take from wages. A deduction is allowed only where a statute or a court order requires it, or where the employee has authorized it in writing and the authorization names a specific amount or a formula for one. A general line in a contract is not enough. No written authorization allows deductions for faulty work, or for cash shortages or lost property where someone other than the employee had access to it. Time spent in training the employer requires is work time and is paid.
A repayment clause as a contract
Apart from deductions, an employer may try to recover training costs as a debt under the contract. Courts have looked at whether the amount reflects the real cost of the training rather than a penalty, whether the training has value to the employee beyond that job, whether the clause declines over time, whether it applies when the employer ends the employment, and whether the wording is clear. Each of those points changes the answer.
How Lutfi Law helps
We read the clause and the pay records, explain what the Act allows, and set out the options. The first consultation is free for employment matters.
Related: Employment law · Severance in Ontario (guide) · Terminated in Ontario? checklist
Lutfi Law's founder answered a reader's version of this question in The Globe and Mail's Career Advice column (April 2026). Read it →
Last reviewed: October 2026 · Lutfi Law