Can We Require Employees to Stay After Training? Seeking Advice on Agreements and Documentation

Training Agreement Inquiry

I am working as an HR in a software development company. In one-to-one discussions with employees, a few have shown interest in learning advanced technologies if the company can assist with training. The company is ready to provide training, but I would like to know if the company can make any agreement with the employees to ensure they stay with the company for a minimum of two years after the training. Additionally, do we need to collect any documents from them? Can anyone advise me on this?

Thanks,

Joylin

Employee Training Bonds: Key Considerations

The company can take a bond from these employees. The company should be specific about the training involved, the cost of training, the actual training (not just posting abroad for work and showing it as training), and the further period of service in the company for each employee. An agreement can be drafted by a good lawyer so that it does not fail if challenged in a court of law.

Read this link: https://www.citehr.com/134784-bond-b...g-program.html Legally India: Court summons issued for breaking training bond (1/1)

Legal Implications of Employee Agreements

An agreement of such nature will not be legally tenable in the eyes of the law as per the Apex Court's decision that every employee has the right to shift to another employer for self-betterment or a higher salary, and the existing employer cannot bind them.

For the sake of argument, even if there is an agreement between the employer and employee, and if the employee fails to serve the stipulated term, then the employer is entitled to compensation. However, in case the employee fails to serve such a term, the employer cannot deduct or recover that amount from the statutory dues of the employees. The only option left for an employer is to challenge the violation of the agreement before a civil court, which is both expensive and time-consuming.

For similar advice on labor laws, check this post - https://labourlawhub.com/2016/02/19/...ts-competitor/

Another option could be that the company agrees to pay the amount of training after 24 months of the employee staying in the organization once he or she completes a training course.

Such agreements are only a deterrent and difficult to enforce. The contribution to the organization and performance of an employee who has made up his mind to leave the organization will always be lacking. There has to be a mental and moral connection with the organization created rather than depending on such agreements.

- rameshbg, Hosur