How Can We Ensure Employees Stay After Costly Overseas Training? Seeking Agreement Templates

Dear Sir/Madam,

Our company sends many candidates to foreign countries for training. In this process, the company incurs a lot of expenses. The company aims to retain these employees for the long run. Kindly share the relevant documents here so that before sending anyone abroad, we can have the agreement duly signed by those employees.

Thanks,
Kumar Gyanendra
General Manager - HR

Dear Kumar Gyanendra,

To make this type of agreement, it is recommended to seek advice from a professional lawyer who handles cases under the Indian Contract Act of 1872. Please consult with them to determine whether executing the agreement on stamp paper is sufficient or if registration at a specific government department is required.

Before finalizing the agreement, request the employee to submit an application detailing the training/education course they intend to pursue, the location of the course, its duration, the estimated costs for visa processing, foreign travel, and accommodation, as well as their commitment to work at the company to achieve a return on investment for the expenses incurred due to the training course.

Instead of a standard application, the employee can be instructed to submit a notary-attested affidavit. The points outlined in the affidavit can also be incorporated into the agreement.

For both the affidavit and the agreement, it is advisable to use a stamp paper valued at above ₹500.00.

Thanks,

Dinesh Divekar

Hi Gyan, There are a few sites that might give you a fair idea of the agreements required for training abroad:

- https://www.scribd.com/document/1718...rseas-Training
- https://www.corporatelaws.in/2020/12...ement.html?m=1
- https://cloudassess.com/blog/training-agreement/
- https://www.charliehr.com/blog/train...ment-template/

Additionally, you would need to seek the expertise of advocates specializing in this area to draft a suitable agreement specific to your requirements.

Hi, please find the attached Indemnity format for your reference and modify it as per your company's requirements.

I have corrected the spelling, grammar, and formatting of your message. Let me know if you need any further assistance.

Dear Gyan Jha,

A learned member, Jagdeeshwara, has shared a format of the contract that can be made with the employee while sending him abroad for training purposes. However, I find several shortcomings or loopholes in the draft. These are as follows:

a) Please check with the lawyer whether it is appropriate to use both the terms "indemnity" and "surety" in the heading. Will either term suffice?

b) On the first page, the last sentence appears to be incomplete.

c) The "Sunset clause" is not included in the contract.

d) The "Exemption clause" is not included in the contract.

e) The "Exculpatory clause" is not included in the contract. For example, what if the employee suffers due to an accident and, because of the physiological impairment, he is unable to complete the training or serve in the company for the specified period?

f) The "Severability clause" is not included in the contract.

g) The "Force majeure clause" is not included in the contract.

h) The "Jurisdiction clause" is not included in the contract.

Additionally, the contract draft does not mention anything about:

i) Inability of the employee to complete the training within the prescribed period. What if the employee fails the examination, and the training course is extended? Who will bear the expenses for the extended period?

j) The contract says that the employee is required to serve for _____ years on completion of the training. Okay. What if the employee serves the company but does not render the desired level of performance? How will the company handle a situation of underperformance?

Notwithstanding the shortcomings, the value of the draft does not diminish. It very well serves the purpose of the preliminary draft. It can be modified further.

Thanks,

Dinesh Divekar

Hi, When the company intends to depute employees for any kind of training, including technical training, they spend a lot of time and resources on the same. It is quite natural that they expect these employees to serve the company for a minimum period of time. Therefore, it is advisable to execute an indemnity bond between the management and the individual employee. This bond should clearly mention the nature of the training, its duration, the start and end dates, the country and exact location of the training, details of the training organization, the cost involved, the lock-in service period, and the compensation in case of a breach of the indemnity bond. Please check the required value of the stamp paper in your state. As previously suggested, you can have it executed through your advocate the first time. I am attaching a sample Indemnity Bond to be executed, which can be modified as per your requirements.

Regards,