How Can We Secure an 18-Month Commitment from New Hires for a Government Project?

I am hiring experienced IT professionals for a project and catering our services to a government client. Considering this is a government project, our team wants a minimum commitment of 18 months once the candidate joins, as we have a replacement clause agreed with the customer.

Ensuring Candidate Commitment

How can we ensure this commitment when we hire a candidate? Is there a separate contract, or could we include this in the appointment letter itself? If so, please provide me with a template for the same.

Thanks.

Hi, even if you add any additional clause, there will be a separation clause in your appointment wherein the employee reserves the right to submit resignation at any time during the contract period and to be relieved with the proper notice period.

Indemnity bond option

I would suggest you go for the indemnity bond option with security cheques. Make it clear in the appointment letter and indemnity bond that the employee will be under an obligation to offer uninterrupted service to your company, will neither leave the company during this period nor go on leave longer than entitlement. Also, you may indicate some compensation amount in case of a breach of the indemnity bond. However, most experienced candidates would be reluctant to sign this indemnity bond with security cheques.

Retention bonus alternative

Alternatively, you may introduce a retention bonus for those employees. Formulate a retention policy making those employees eligible for a fixed amount (apart from the agreed monthly salary). The amount will accrue on a monthly basis and will be paid to the employees upon successful completion of 18 months only. Even this will work out.

Hi Jegan,

When you want to establish a minimum commitment period with a candidate for a government project, it's important to have a clear and legally binding agreement in place. This can typically be included in the employment contract or appointment letter. Here's a template you can use as a starting point for this purpose:

[Your Company Name]
[Your Company Address]
[City, State, ZIP Code]
[Date]

[Employee Name]
[Employee Address]
[City, State, ZIP Code]

Dear [Employee Name],

Re: Appointment as [Job Title]

We are pleased to offer you the position of [Job Title] at [Your Company Name], effective from [Start Date]. This offer is contingent upon successful completion of all necessary background checks, reference checks, and any other required screening processes.

As part of this appointment, we would like to bring to your attention certain terms and conditions, including a minimum commitment period of 18 months from your joining date. This commitment period is essential due to the specific nature of the project being undertaken for our government client.

During this 18-month period, both parties agree to make all reasonable efforts to ensure the successful completion of the project. In the event that you wish to terminate your employment before the end of this commitment period, you agree to provide [Company Name] with [Notice Period, e.g., 30 days'] notice in writing.

Please be aware that there is a replacement clause agreed upon with the customer, and any premature termination may result in additional costs incurred by [Company Name], which may be recovered from the departing employee.

This offer of employment is also subject to the terms and conditions outlined in the attached Employee Handbook and any other policies and procedures that may be introduced by [Company Name] from time to time.

If you accept this offer, please sign and return a copy of this letter by [Deadline, e.g., within 7 days] to confirm your acceptance of the terms and conditions.

We are excited about the opportunity to work together on this important project and look forward to your contributions.

Please do not hesitate to reach out to me should you have any questions or require further clarification.

Sincerely
[Your Title]
[Your Contact Information]

Thanks,