How Do IT Companies Handle Employee Departures After Overseas Training? Seeking Policy Insights

I wanted to inquire with all the HR colleagues who work for an IT company and send their employees for training abroad.

Employee Agreement for Overseas Training

1. Does your company have an agreement with an employee that if they are going abroad/onsite, they will be liable to stay with the organization for a stipulated period of time (negotiable)? [Similar to a company that makes employees sign a bond on employment]

Dealing with Employee Departure Post-Training

2. If your company does not have an agreement, and the employee leaves the organization just after their arrival from onsite, it's a loss to the company. How do you deal with it?

I need to draft a policy and require some valid points and details to draft the same.

Please type the search query as "training agreement/bond" in the search bar at the top. You will find lots of valid information. Just for your information, companies can have a training agreement signed by the employee, stipulating a commitment to a certain period of employment with the organization. In case of defaulting, the company is liable to recover the losses. The question is, how do we recover the losses if the employee takes his salary and simply absconds? Therefore, some organizations collect original certificates (education and/or experience letters) and keep them, handing them over upon the employee's exit. However, this practice may not be considered legally advisable.

Hope the above information is useful.

Regards,
Gia

I would add to Gia. I would suggest you have a "contract" made rather than a "bond." Ensure that fair clauses are included for exiting or canceling the contract/bond. While a bond and a contract are similar, they have different meanings in the court of law.

A few points to consider are that the company needs to invest quality time in selecting the right candidate who will be loyal and contribute to the company's growth. It has been observed that if the company does not align with and reward overseas-trained employees who bring value after their training, they may lose these employees to companies that capitalize on their skills. Therefore, it is crucial to have a clear career path planned for employees undergoing training. Remember, more than money, the time, effort, and re-training needed cost the company more compared to recovering from losing an employee.

Wishing you all the best.

Regards,
Ukmitra

Rightly said. I had an experience where employees under a bond are not given due promotions and benefits, considering that they wouldn't leave the organization for maybe 3 years or 5 years, whatever the bond duration. This situation creates frustration in them.

It is advisable to have a contract with the said employee. Though bonds are not of much use, they act as a deterrent, especially if the parent of the employee acts as a guarantor.

Secondly, include a penalty clause where the employee is obligated to stay in the company for a specified period, not be solicited by the company to which he is being assigned, etc. In case of breach, the employee should be liable to cover the costs incurred by the company on his training, housing, travel expenses, time spent, etc.

Regards,
Yamuna GC

Generally, all organizations prepare a service agreement with employees who go out for training or skill updating purposes. This agreement includes a clause so that these employees do not leave the organization for a certain period of time to capitalize on their learning from the training. The clause will clearly define the penalty in case trained employees leave abruptly before the stipulated period. It is an agreement from both parties, not a bond.

Consequences of Breaking the Agreement

The question of what happens if this agreement is broken arises. To the extent possible, both parties should respect the other party's career and business objectives. If taken to a court of law, it can be treated as bonded labor, which is not permitted by law. Ultimately, it will cause overall disturbance to both parties. Therefore, it is essential to respect each other and not treat trained employees as bonded laborers.

Selecting Candidates for Training

When selecting potential candidates for such training, choose more potential employees and discuss with them about the training, career path, and the agreement clause. Only choose those who are ready to agree to the terms. This process can help eliminate major risk factors right from the beginning.

I hope all the suggestions provided by community members have given you an idea about it.

Regards,
Suresh