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Trakesh (director)     17 September 2012

Service contract

Hello everybody,

we are running an IT/Software company and we hire the trainee programmer for the training of technology of programming, the duration of training is around 8 month, we never charge any fee for the training and we give some stipened amount during the training period to the trainee programmer.

Before starting the training we ask the desire candidate to sign an agreement to minimum work for next one year with the company after completion of the the 8 month training.and they sign it as they need the job as well as free training, but in general they left the job after completion of the training or maximum 6 month of that, as they got good or better job from the market.

our concern is that as we are giving the free trating and not charging any amount, as well as we are paying the stipened during the training duration, so we want the employee must work with the compnay for next one year with our salary package and our increment policy.

So can you please tell me or help me or suggest me to find , weather is it ok in the legal or any issue with the way we are doing.

what is the best way, and can we sue the emolpyee breaking the agreement.




 4 Replies

Sudhir Kumar, Advocate (Advocate)     17 September 2012

Consult Apprenticeship Act

Kumar Doab (FIN)     17 September 2012

This is an intesting thread and discussion.

Consult the act and check if your industry and your company can enroll apprentice.

Many consultants speciaise in crafting the agreements and may be happy to issue notice and file cases on your behalf.

Employees may find such companies repelling.

You have posted that "so we want the employee must work with the compnay for next one year with our salary package and our increment policy." The problem and resoloution is in the lines written by you.

If employee is sure that he/she shall be getting adequate compensation,increment, and career employee shall stay.

If the training you provide is to enable the employee perform the work/job assigned by company to employee and it does not add to qualification and special skill of the employee, it may be difficult to succeed in court of law.

You may evaluate the training being provided to employees.

Although many employers do make the employees signservice agreement/bond the fact is that  number of properly informed employees has also increased.

You may find the attachment useful.

Attached File : 922900792 background paper.pdf, 922900792 bond enforceable or not.doc downloaded: 96 times

darshana sawant (associate consultant)     20 September 2012

Dear Sir,


Though you may not charge anything for the training given, but if you want to retain the talent, then you need to draft a proper service agreement cum bond on a stamp paper and put in a clause for liquidated damages in case the service agreement is not honoured.  Then, only those who are seriously interested in the job will sign the bond.

DUANE (TYPIST)     23 September 2012

unfortunately you have not mentioned or shown the contract. some companies have the thing that it is not a contract. if you have signed any agreement or contract you can ask for breach of contract money if bond you cannot ask any money . some companies terminate peoples services and tell them to resign

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