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Dinesh DivekarDear member,
If you are employing the under-graduates and if you wish to give them a time span of three years by which they are expected to complete their graduation, then you may mention this condition in the appointment letter itself. There is no need to make a legal agreement over and above the appointment letter. The appointment letter itself serves as a contract under the provisions of the Indian Contract Act, 1872.
Furthermore, you may appoint them with a "Fixed Term Contract" (FTC) and the term of appointment can be for three years. You can mention that the extension of the further term of conversion from FTC to permanent employment would be subject to completion of graduation in this period.
From India, Bangalore