If an employee cannot finish the contract, a contractually good reason has to be given. Standard contracts would list funerals, sudden illness or some such as reasons. Thus, usually, if the employee has been honest and forthcoming and given due notice, there is no reason why the employee should not pay. Howvever, if the contract is being broken for no good reason, even with a notice, unless it is stipulated in a legally binding contract, the employer is under no obligation to pay. Quite on the contrary, my contract, for example, says that if I break my contract for unacceptable reason, I have to pay my employer compensation. There should be a part of the contract this person has signed which will explain who has to pay something or if there is no need for payment.