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M. Deepak (HR)     29 April 2012

How to stop employees being pulled by competitors

Very regularly it happens that we hire a fresh candidate and train him/ her . Then some new entrant in same industry offer very high , unreasonable package and pull our employees. 

What is the practical solution to solve this problem. Here are few solutions I am thinking about. Please advice on their legality and usefulness.

(1) Keeping original education certificates as security.

(2) Executing 2 years bond. .

(3) Clause in appointment letter that they cannot join similar industry for 6 months after leaving job.

what else can be done ?


 4 Replies

Kumar Doab (FIN)     29 April 2012

It is felt that the company can ask to show the original certificates for varification, but can not keep these as security evn if company issues an acknowledgment.

Company may execute service agreement/bond but does your company provide any training to justify the service agreement/bond.

Is employee provided access to such information that joining any competitor may harm the business interest of your company.

Many companies excercise all options conceived by you and many employees jump the fence and leave. This forum has many threads on such issues.

In the long run inculcicate good HR practices, offer rewarding  incentives/R&R structure, growth opportunities,better the remuneration,provide avenues for training and development, and offer job security, provide supportive and effective line management etc...... Introspect and identify why employees leave at first instance. There may be other reasons as well.

The expenses on education have increased manifold and many of the candidates avail loan for getting educated. Good package is indeed need of the hour.

Valuable advice of learned experts/members is soguht.

1 Like

Dushyant Pandya (Lawyer)     30 April 2012

As per my knowledge, its time for employees and law is in favour of them. The simple way to stop them from leaving the organisation is sitting with them try to understand their mentality and problems with other coleages or superiors. That may help you more than any tactics through law.


Your all three options may not work as law is against it. Enclosed files may help you to understand where you are wrong legally.

Attached File : 540624856 employee - sc direction - negatve covenants in employee contract.pdf, 540624856 ghc - man accused of breach of contract.pdf downloaded: 310 times
1 Like

M. Deepak (HR)     30 April 2012

we do provide formal trainingand on job training,  that is why competitor  is willing to pay much more than a fresher.  

Will any bond will work ? 

RSH (NA)     08 May 2012





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