High Employee Turnover: Should We Use Employment Bonds to Keep New Hires Longer?

Dear Sirs,

Our automobile dealership network in Bihar is quite extensive. Due to the high rate of employee turnover within the company, we are considering implementing a legal agreement with new hires, particularly for positions such as GMs/SMs, stipulating that they commit to serving a minimum period of 1-2 years before resigning.

I kindly request your assistance in providing a sample legal employment bond draft that includes all the necessary details for prospective employees to review and sign.

Regards,
Pradeep Anwar

What is the significance of a legal bond when the bond itself is illegal?

Especially when you appoint a General Manager (GM) and other managerial personnel, it is expected that they should have certain levels of skills, education, and experience. Therefore, you cannot even enforce a training bond, which can be applicable in the case of freshers to some extent, limited to the training costs incurred exclusively for the trainee concerned. Instead of implementing a bond, it is advisable to conduct a thorough analysis of the organizational issues leading to high attrition rates, and then seek solutions to address those problems.