Are Long-Term Employment Agreements Necessary to Prevent Frequent Job Switching?

Employment Agreements and Appointment Letters

Hi, I am Ismail. It is observed that many organizations require newly joined employees to sign employment agreements to stay in the organization for 5 or 10 years. My question is, is it necessary to make any agreement after giving an appointment letter to the employee, mentioning the conditions and obtaining an agreed copy from the employee? Actually, I think the appointment letter serves as an agreement, so there is no need to create any other agreement except the appointment letter.

Bonded Labor and Employee Retention

I understand that bonded labor is prohibited. However, some employees are quitting their jobs frequently. When the company incurs some investment for them (like providing salary, training, conveyance, etc.) when they are new, they may not be affordable for the organization. Once they become affordable for the organization, they switch jobs. In that case, is bonded labor permitted? If permitted, what should be the format of the employment agreement, and what should be the compensation for the organization? Please clarify.

Dear Ismail, what you say is correct. The appointment letter itself is a contract between the employer and employee. However, to know the exact legal version, you may check the contract act of your country.

As far as making employees sign long-term agreements like five or ten years is concerned, it can be deduced that your company is looking for a legal solution to the challenges arising from the shortcomings of your organization's culture. People will quit their jobs, and companies will have to thrive despite manpower attrition. At the same time, organizations need to take corrective measures to enhance employee retention. In one of my earlier replies, I provided an exhaustive list of reasons why employees leave the company. Click the following link to refer to it: https://www.citehr.com/511164-hr-res...ml#post2189679

Employees stay in a company when they have opportunities to grow and when there is brand attractiveness. If you wish to discuss this issue with me, feel free to call me on WhatsApp, Google Duo, or Skype.

Thanks,

Dinesh Divekar