Tara Agarwal
Hi all,
I am working for a Software development Center. I need to prepare a
Contract between an Employee and the Employer , Some Kind of a bond
that the employee can't leave the Company before a given Period
wherein the employer has invested in the employee in terms of
training etc.
I request you to send me the format for this contract & how can this
be Legalised?

From India, Bangalore
Rajat Joshi
Hr Consulting ,trainer -creative Thinking
Afolabi Ajayi
Hr/mktg Consultant

afolabi ajayi

Dear Colleagues,

The issue of bonding in the workplace should be seen as a very sensitive

HR matter-as no average human being wants to tied down/or loose his/her freedom.

However I think the major thing is to spell it out categorically from the on-set in the letter of appointment/contract that....eg

*For every Company Sponsored Course/Workshop valued at so and cost Employee of so and so status is expected to spend number of months/years with the Company

Otherwise such Employee refunds the cost of such funding to the Company if exist comes before expiration of bonding period.

*Another angle to it is the withdrawal of such certification (original copy) from benefiting Employee at the point of the departure from Company or he/she pays for the total cost of training-course fees, transport, hotel accommodation etal

*In the same vein Employees could be encouraged to share the knowledge acquired fromsuch training as a matter of Company policy by making presentations on arrival from such training programmes and such are kept for Corporate use and pasted on Company servers where everyone can have access to them-hence Knowledge Management is encouraged.

In summary I would advice that the Workforce should be inducted properly from the beginning to avoid the issue of litigation, so if it suits individual Employees they would endorse/or accept the offer made having understood the content and interpretation/s of the appointment/contract papers.

At this point the Employer is free to go ahead with the implimentation of the contents of the contract/appointment papers.


From Nigeria, Lagos
Rajat Joshi

Hi Tara,
Ajayi has given a fair outline for the contract between Employer & employee.
For the draft , you can aproach the local lawyers who would sell and it would have right & relevant clauses which are legally right in case of litigation.
The clauses should act as deterent and right lysaid by Ajayi that Knowlegement Management is the key.
The best contract is emotional contract , which ensures that employees stay for long with your organization.
Rajat Joshi

From India, Pune
Rajat Joshi

Hi Tara,

Further to my response, please refer the article on innovative retention strategy by a major IT Firm in India.


Bangalore-based firm has a novel way of keeping its

employee attrition rate under control.While most infotech companies ask their prospective employees to sign bonds, This company wants new recruits to plonk a Rs 75,000 refundable deposit on the table before they can collect their appointment letters.

Such a drastic measure was warranted by the fact that nearly 50 per

cent of new recruits were flying the coop after their training


"The Rs 75,000 deposit discourages those who join us only for our

training programme," said the company’s vice-president and

global human resources head.

The deposit system, which works through a tripartite agreement between

Company, the candidate and a bank, requires the employee to deposit the

money in the bank directly.

The deposit, along with the interest on it, is refundable when the

engineering graduate completes 12 months with Company after the

three-month training period. Science graduates, who undergo a

six-month training period, have to wait 18 months to claim their


Those unable to put down the deposit have the option of taking a Rs

75,000 loan from the bank, for which they will have to pay interest.

At the end of the period, they can claim the deposit amount as well as

a retention bonus as compensation for the money they lost by way of


The agreement was introduced in April 2004 and has been used for two

placement seasons now. The company claims it has had no impact on its campus recruitment.

"All other companies in the industry get their employees to signs

bonds and other agreements. So we are not doing something that nobody

else is. The company’s placement has not suffered at all under this tripartite




From India, Pune
Tara Agarwal
Hi all,
Thanks for your response. If You have any Templates of Appointment Letter or Contract agreements stating the following points , Please send it across.
Rajat - I have gone through that article , it is a measure taken by wipro recently.
Thanks again,

From India, Bangalore

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