Is It Legal to Require Freshers to Sign a Bond for 18 Months After Training? Seeking Advice

Hello, My company is planning to hire freshers. We will need to invest a fair amount of time, money, and effort in training and grooming them. Hence, we would like to have some kind of bond, for, say, 12 months or 18 months, during which the employee cannot leave us. Should there be a pressing need to leave the company, they can pay a certain amount and leave.

- Can something like this be done?
- Will this be legal?

Seeking opinions and suggestions from the community. TIA

Hi, Rather than opting for a bond agreement, it's better to use a training agreement. When you are going to train freshers and considering that the training incurs costs and time, a training agreement will be the optimal choice. When you hire freshers, explain the requirements to them clearly and emphasize why you seek their commitment. Also, clarify how the training period will benefit them in the future. Select freshers who are genuinely interested in joining under the conditions of the training agreement. If someone seems reluctant, it's best to disregard them.

A training agreement is legally binding, but you need to justify the costs involved, such as software licensing fees and the salaries of senior employees who will be involved in training them.

Thank you for your suggestions. That sounds like a good option.

Drafting the Agreement

1. At a high level, what should the draft of this agreement contain?
2. Should it be done on a stamp paper? If yes, what amount of stamp paper is advised?

Thanks again!

Hi, Rs. 100/- stamp paper would be sufficient. Hire the services of an advocate for drafting a Training Agreement or refer online, even to this portal for free resources, which might not be tailor-made.

Hello, we have also hired trainees, so a training agreement will be sufficient, and you can mention the cost in the agreement. Once they are confirmed, you can provide the confirmation letter.

Thanks,
Harveen Kaur
AVP - Human Resources at RedDoorz