Dear Srirashmi, For the recovery of the recruitment and training expenses in case of resignation of the employee before the stipulated period, you need to insert this clause in the appointment letter. You need to explicitly mention the amount that the employee has to pay, the parameters of the recovery, and the process of recovery.
Potential Issues with Recovery Clauses
However, there is a catch in this arrangement. Many times, newly joined employees have complained on this forum that the organization did not provide any training; however, they were required to pay "bond money" for the short stay. Many organizations have misused this clause and have asked employees to pay the amount even though they were terminated. Therefore, utmost care has to be taken to ensure that the policy is not executed unfairly. Does your organization have that kind of maturity to avoid unjust implementation?
Thanks,
Dinesh Divekar