Dear Sir/Madam,
Kindly provide a detailed draft for an appointment letter in which an employee should not leave the company for at least 3 years. It's a permanent job, but still, for security reasons, the company wants this. Kindly help me with my above-mentioned query. It's an urgent requirement.
Waiting for the earliest response.
From India, Thane
Kindly provide a detailed draft for an appointment letter in which an employee should not leave the company for at least 3 years. It's a permanent job, but still, for security reasons, the company wants this. Kindly help me with my above-mentioned query. It's an urgent requirement.
Waiting for the earliest response.
From India, Thane
Hi,
On the lighter side, the only available option is not to allow the employee to leave the office and to strictly close the door for three years! LOL! It is not the appointment terms that make the employee continue, but the following points may ensure the employee's continuation:
- Opportunity for learning and development
- Opportunity for growth in line with performance
- Performance Improvement Plan (PIP) in place
- Recognition of work
- Friendly work environment
- Role and responsibilities to fulfill
- Competitive salary in line with market standards
- Well-being measures
- Transparent HR policies
I won't say all the above points make them stick with the company permanently, but for a maximum number of years. However, as a short-term measure, you may consider issuing an indemnity bond for 2-3 years along with the appointment order. Alternatively, introduce a bonus in their salary payable after completing 3 years with the company.
Alternatively, consider adding a retention salary component to their salary, payable after 3 years, or split into a 50% payout after 1.5 years and the remaining after another 1.5 years.
Candidates nowadays are not only looking at salary; best HR practices ensure a long-term relationship.
I hope this helps. Let me know if you have any questions.
From India, Madras
On the lighter side, the only available option is not to allow the employee to leave the office and to strictly close the door for three years! LOL! It is not the appointment terms that make the employee continue, but the following points may ensure the employee's continuation:
- Opportunity for learning and development
- Opportunity for growth in line with performance
- Performance Improvement Plan (PIP) in place
- Recognition of work
- Friendly work environment
- Role and responsibilities to fulfill
- Competitive salary in line with market standards
- Well-being measures
- Transparent HR policies
I won't say all the above points make them stick with the company permanently, but for a maximum number of years. However, as a short-term measure, you may consider issuing an indemnity bond for 2-3 years along with the appointment order. Alternatively, introduce a bonus in their salary payable after completing 3 years with the company.
Alternatively, consider adding a retention salary component to their salary, payable after 3 years, or split into a 50% payout after 1.5 years and the remaining after another 1.5 years.
Candidates nowadays are not only looking at salary; best HR practices ensure a long-term relationship.
I hope this helps. Let me know if you have any questions.
From India, Madras
Besides the Mr. V.M.Lakshminarayanan’s reply I would like to add here, that when Management is keeping the right to terminate an employee, by giving one month’s notice or more, similarly the employee has also got a right to terminate the contract of employment, by giving one month notice, if he is not happy. The best HR practices/ policies (few examples explained by Mr. V.M.Lakshminarayanan) can only retain an employee.
From India, Madras
From India, Madras
Hi,
Please do not bring employees into these kinds of bonds; instead, create a fantastic workplace and actively engage them. Give them responsibilities that they see as challenges. Bonds and agreements are not valid under our constitution.
From India, Bangalore
Please do not bring employees into these kinds of bonds; instead, create a fantastic workplace and actively engage them. Give them responsibilities that they see as challenges. Bonds and agreements are not valid under our constitution.
From India, Bangalore
Sir, What is the effective date of ESIC reduce rate ? Kindly help in this regard.
From India, Meerut
From India, Meerut
Vaishali, you can't make a clause in the appointment letter to restrict an employee for 3 years. Instead, you can make an agreement with the person, where he/she will not be an employee. Alternatively, you can create a 1 or 2-year bond, as 3 years is too long considering the competitive industry trend.
Furthermore, I agree with V M Lakshminarayanan on establishing good practices within the organization, which will eliminate the need for any bonds or agreements to retain talent.
- Viral
From India, Ahmadabad
Furthermore, I agree with V M Lakshminarayanan on establishing good practices within the organization, which will eliminate the need for any bonds or agreements to retain talent.
- Viral
From India, Ahmadabad
Good afternoon sir, Sir can I get school house keeping labours wage structure, Thankig you Ashok
From India, Pune
From India, Pune
No bonds or contracts will hold the candidate, and legally, you cannot fight in the court of law. You can only get into a bond if the employer is investing a huge amount of time and money for training, professional development, or building additional skills and capabilities.
From India, Mumbai
From India, Mumbai
You cannot retain employees by tying them with a bond, notwithstanding the fact that such bonds have little or no support in law. Secondly, by incorporating such a restrictive clause, you make him doubt the work environment in your company. As other members rightly said, strive to convince the candidate that this is the workplace he is looking for.
B. Saikumar
HR & Labour Relations Advisor
From India, Mumbai
B. Saikumar
HR & Labour Relations Advisor
From India, Mumbai
You can go for a bond with the employee, but the bond must be valid as per the Indian Contract Act, 1872. You need to produce training cost proofs, etc. The bond must be mutually beneficial but not one-sided.
From India, Hyderabad
From India, Hyderabad
Basic salary is $16,000. I worked for 10 days in September, and my salary was $5,333. My question is, will the PF share be deducted from the $5,333? The PF limit is $15,000, so for 10 days, the amount will be $5,000. Which amount will the PF be deducted from? Please help!
Thank you
From India, New Delhi
Thank you
From India, New Delhi
Dear Vaishali,
Our learned members have given you very good suggestions on the aspect of employee retention. Apart from that, they have put forward valid arguments for and against employment bonds as an alternative. In this regard, I am in complete agreement with M/s Saikumar and Satyanarayana. Unless the employer can prove to the satisfaction of the court the compelling need for an employment bond, courts would typically deem such bonds as contrary to public policy under sec. 23 of the Contract Act, 1872, and declare them void.
You have not provided any indication of the "security" rationale that necessitates employees to stay in the job compulsorily for a minimum of three years. Alternatively, it may give the impression that the job requirement is only for a period of 3 years, and afterward, the management can easily let them go.
Therefore, my suggestion, as an alternative to avoid legal complications and to instill confidence in prospective employees, would be for you to consider the option of Fixed-Term Contract Employment for an initial period of 3 years. This contract should include a clear, longer notice period for unilateral exit, followed by the possibility of transitioning to permanent employment with continuity of service and associated benefits on par with other regular employees of the organization, contingent upon the completion of the full contract period.
From India, Salem
Our learned members have given you very good suggestions on the aspect of employee retention. Apart from that, they have put forward valid arguments for and against employment bonds as an alternative. In this regard, I am in complete agreement with M/s Saikumar and Satyanarayana. Unless the employer can prove to the satisfaction of the court the compelling need for an employment bond, courts would typically deem such bonds as contrary to public policy under sec. 23 of the Contract Act, 1872, and declare them void.
You have not provided any indication of the "security" rationale that necessitates employees to stay in the job compulsorily for a minimum of three years. Alternatively, it may give the impression that the job requirement is only for a period of 3 years, and afterward, the management can easily let them go.
Therefore, my suggestion, as an alternative to avoid legal complications and to instill confidence in prospective employees, would be for you to consider the option of Fixed-Term Contract Employment for an initial period of 3 years. This contract should include a clear, longer notice period for unilateral exit, followed by the possibility of transitioning to permanent employment with continuity of service and associated benefits on par with other regular employees of the organization, contingent upon the completion of the full contract period.
From India, Salem
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An appointment letter is a bilateral agreement. You cannot unilaterally ask a candidate to abide by your rules and regulations. On the other hand, if you create an excellent work environment, promote employee engagement, provide proper career growth opportunities, identify high performers, nurture them, understand what motivates them to perform, and develop their skills and competencies, individuals are less likely to leave the organization.
I began my career as an Executive Secretary to one of the five board directors in 1978 at L&T in Delhi, after resigning from a permanent job in the Central Government. I retired from L&T after 31 years as a Senior DGM and Head of HR, and spent an additional two years there as an HR Consultant. Never once did I consider resigning. Currently, I am enjoying post-retirement life, engaging in overseas travel for training and HR assignments, which keep me occupied with my soft skills and HR training work all the time.
From India, Bengaluru
I began my career as an Executive Secretary to one of the five board directors in 1978 at L&T in Delhi, after resigning from a permanent job in the Central Government. I retired from L&T after 31 years as a Senior DGM and Head of HR, and spent an additional two years there as an HR Consultant. Never once did I consider resigning. Currently, I am enjoying post-retirement life, engaging in overseas travel for training and HR assignments, which keep me occupied with my soft skills and HR training work all the time.
From India, Bengaluru
Normally, the appointment letters are issued with the mention of a probation period of 6 months or 1 year, as the case may be. Upon successful completion of the probation period, the services are confirmed. However, you cannot compel an employee to work continuously for a period of at least 3 years; rather, the HR should devise a proper policy to retain such employees.
Alternatively, there is a provision for FIXED TERM EMPLOYMENT (Contractual) where you can include a provision for appointments lasting 3 years, subject to the applicable terms and conditions as stated in a normal appointment letter.
9937822563/6370361410
From India, Bhubaneswar
Alternatively, there is a provision for FIXED TERM EMPLOYMENT (Contractual) where you can include a provision for appointments lasting 3 years, subject to the applicable terms and conditions as stated in a normal appointment letter.
9937822563/6370361410
From India, Bhubaneswar
Dear Vaishali,
Is that security reason means your employer self-centred or unprofessional? Talented employees stay because they are appreciated, challenged, involved in decisions, listened to, mentored, promoted, and paid well (better emoluments).
Regards, Mohan Nair.
From India, Mumbai
Is that security reason means your employer self-centred or unprofessional? Talented employees stay because they are appreciated, challenged, involved in decisions, listened to, mentored, promoted, and paid well (better emoluments).
Regards, Mohan Nair.
From India, Mumbai
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