Employee Bond - Attrition Rate

Dear Senior's,
Greetings !!
Due to the attrition rate is more in our company, am planning to introduce one year bond for newly joined employees. After signing the bond, if employee leave the company. What legal actions can we take.
Please advise me.
Regards,
Sai Ganesh

You must find out why employees are leaving?
Bond cannot stop those who want to leave.
Is the rate of attrition higher than normal for your industry?
Try to analyse fundamental reasons rather then look for short term remedies.

It is not at all appreciable if you take some measures like this. Getting bond signed for this purpose is illegal as some courts have held this. However you may draft something like this in your appointment letter or may draft a bond where both side should have equal rights on termination of the contract. Remember you can't bound an employee to work with you in cases like bad work culture, no timely salary disbursements and many more reasons which make employees to leave.

Moreover getting bond signed may be a short term remedy which eventually may effect in attracting talents in future if you have issues like bad work culture , salary disbursements issues etc etc.

Hence instead of doing all these, you may initially do an employee survey to find out the reasons behind the attrition.You may do one 2 one counselling .You may collect feedback/reasons during exit interviews to get yourself familiar with the problems. Take corrective measures on these. Get some employee development plans in place,.Focus on employee engagement programmes and handle employee grievances effectively. These may help you in reduction of attrition.

Hope this will be helpful for you.

Employment Bond in india is restricted to cases where the company has provided some training and only to the extent of money spent on the employee.
If you are not providing formal training, then the bond is not enforceable.
You can send a legal notice and file a civil suite for recovery of the bond money. But any good lawyer will get the judge to throw away the suite, may be even grant litigation costs.
The only major achievement the bond will have is to make it more difficult to recruit.
There are more efficient ways to retain employees

You are happy if employees work for just one year and then leave?
Find some other methods of retaining employees. Even if basic things employees require, are not provided by the employer, make employees leave - Like good office, good sitting arrangements, lights, space, sitting arrangements, provision of water coolers, good instruments like desktops or laptops and servers / UPS / good delegation of authority, training needs, timely pat on the back (encouragement and acknowledgement of good work done) of the employees and so on.... experts can add many more things.
Remember one sided bonds, i.e. without any obligation on the part of the employer is not a valid document.

Dear Ganesh !!
Introduction of Bond with new joinees will not be Legal & appropriate solution to curb the Attrition rate.
Instead you must try to find out Reasons of High Attrition as rightly pointed out by Sr. Members of this forum.
You can also take the help of some Vendor to conduct a detailed Survey why attrition rate is High in your Co. Consultant/Vendor can be asked to submit the report along with his observations.
This method may provide you the proper Reasons of High Attrition since the employees will feel free to express their views with third Party.
Regards
Optimus Consultants
9672616784

Its really stupid culture which followed by every reputed company. I totally dont agree on this concept buy signing the bond the employee will be retained.No one can stop the rain if it has to come it will come . The same way if employee decided to leave the company he will leave, no bond or legal action can stop him. If you have diseases you have to take medicine Instead of giving others. Try search the reason why employees are resigning the job and fix the problem. Then see you will have better result for long duration . Dont suggest your management such crazy idea for retaining the employee.