Capita, one of the UK’s largest outsourcing companies, has demanded payouts of up to £21,000 from graduates who tried to pull out of an unpaid training scheme under which they were not guaranteed a job.

The company, which provides services ranging from electronic tagging of offenders to store card services for retailers and BBC licence fee collection, has been criticised for advertising a number of roles in its IT resourcing division that stipulate applicants must be a graduate and able to attend between two and four months of unpaid training in London or Manchester.

Former trainees who spoke to The Guardian said they had been disappointed with the scheme, as the training consisted almost exclusively of online reading from a digital library without any direct teaching or on-the-job experience.

One former trainee described the course as “absolutely useless”. They said: “All you get is academic textbooks to read. Anyone expecting a hands-on approach would be disappointed. I was offered a few opportunities by other graduate schemes and companies [during the Capita training] but I refused them as I was under the threat of a liability to pay £21,000. I thought at the end of it how foolish I was.”

Another former trainee said that they had decided to leave after just over a year of working for Capita and had been asked to pay about £21,000. After protesting, the trainee ended up without her last month of pay, or about £1,200.

“I think they knew I was vulnerable as I started as a graduate,” the trainee said. The trainee sought a new job after finding they were being used to “fill HR gaps” rather than being given roles suitable to her training.

Capita said that it now charged £13,000 to trainees who wanted to leave before completing their training and two years of work. It said it had previously charged different rates depending on the role involved.

A spokesperson said: “All participants in the training are made fully aware, at numerous times prior to commencing the training, that it is provided free of charge to only those people who successfully complete the course and are engaged by Capita or a Capita client. Those who successfully complete the training but cannot be found a role within 90 days also receive the training free of charge.”

Further revelations about the Capita scheme come as it emerges that one of Capita’s rivals, FDM Group, a FTSE-listed company which works with the Home Office and Ministry of Justice, also demands graduates sign up to months of unpaid training in order to secure jobs.



The group’s graduate programme includes up to 14 weeks of unpaid training, after which it says 99% of attendees are placed in a job.

The company also demands that trainees pay up to £20,000 if they leave during the training or the first two years of work.

A spokeswoman for FDM said: “The professional training we provide is a major financial investment in our people and in line with employers who invest in their people, we have clauses in our contracts that look to recoup the cost of training with a cap of £20,000 if a person leaves during training or the first two years of consulting. We have a commitment to transparency with all applicants to ensure that they understand the terms clearly. Trainees have 14 days from when they start training to trial the programme and leave with no fees charged.”

“We have a clear and unwavering commitment for all trainees and employees to be treated and compensated fairly and in compliance with all applicable laws and regulations. Our employees receive a competitive graduate salary that far exceeds national minimum wage levels.

“Individuals undertaking our bespoke training do not engage in any work or provide any services for us or any of our clients until they have successfully completed their training, passed all relevant internal and external examinations and been assessed as ready for the workplace.”