HI
I am working in a BPO, where attrition is 30% to 40% for the new joiners who not even completes a period of 2 months which leads a very high training cost.
Is there any legal way through which we can recover the cost of the training from the employee or can bound an employee to work at least 6 month in production after his/her training
Is there any kind of Contract or bond
From India, Delhi
Contributing Member
3I am working in a BPO, where attrition is 30% to 40% for the new joiners who not even completes a period of 2 months which leads a very high training cost.
Is there any legal way through which we can recover the cost of the training from the employee or can bound an employee to work at least 6 month in production after his/her training
Is there any kind of Contract or bond
From India, Delhi
Contributing Member
You can go for a bond whereby the employee may be asked to remain until the training costs are recovered. However, there should be proof of training given to employees and it should not be for the sake of collecting amount or compelling the employees to remain with you.
Regards,
Madhu.T.K
From India, Kannur
Most Appreciated Member
Regards,
Madhu.T.K
From India, Kannur
Most Appreciated Member
Hi Madhu,
Please what kind of proof that I need to kept with me for this.
1.Can you Please forward me some kind of format on this.
2.Can the company held document of an employe for a specific period untill it covers its training cost.
If you have any Verdict,case, notice,circular related to this issue by any court please send it to me.
The main reason for posting this issue to get some kind of verdict or circular that has been issued by the court or legal authority for making it a proof.
Thanks & Regards,
Yajuvendra Singh Bisht
From India, Delhi
Contributing Member
Please what kind of proof that I need to kept with me for this.
1.Can you Please forward me some kind of format on this.
2.Can the company held document of an employe for a specific period untill it covers its training cost.
If you have any Verdict,case, notice,circular related to this issue by any court please send it to me.
The main reason for posting this issue to get some kind of verdict or circular that has been issued by the court or legal authority for making it a proof.
Thanks & Regards,
Yajuvendra Singh Bisht
From India, Delhi
Contributing Member
As a lawyer I can say you cannot force any one to be with your organization just because you organization has imparted some training or education to the candidate.
Training is very tricky. If you do not train, you loose and if you train and employees leave again you loose.
You must work on retention policies, engage your employee along with his family quite often, call get-to-gethers, etc make them feel they work for fun organization. Stress of BPO related jobs should be reduced professionaly and thereby make employees stay.
Bond serves no purpose.
If you do not want to pay for training cost, outsource it and ask the new joinees pay for it upright and give them some valid certificates. You can have a tie up with professional organizations who can impart good training.
From India, Madras
Contributing Member
Training is very tricky. If you do not train, you loose and if you train and employees leave again you loose.
You must work on retention policies, engage your employee along with his family quite often, call get-to-gethers, etc make them feel they work for fun organization. Stress of BPO related jobs should be reduced professionaly and thereby make employees stay.
Bond serves no purpose.
If you do not want to pay for training cost, outsource it and ask the new joinees pay for it upright and give them some valid certificates. You can have a tie up with professional organizations who can impart good training.
From India, Madras
Contributing Member
Dear Mr.Mathu,
We are an automobile OE manufacturer having plant across India. We used have DET and GET for 2 years training.
As per our trainee letter they have to serve minimum 2years after training.
If they will leave with immediate completion of training they will have to pay 2years stipend what company has paid.
And like wise there are some reasonable recoveries for the period they served for company in said period.
Is it legally acceptable or not.
regards
ARD
From India, Mumbai
We are an automobile OE manufacturer having plant across India. We used have DET and GET for 2 years training.
As per our trainee letter they have to serve minimum 2years after training.
If they will leave with immediate completion of training they will have to pay 2years stipend what company has paid.
And like wise there are some reasonable recoveries for the period they served for company in said period.
Is it legally acceptable or not.
regards
ARD
From India, Mumbai
For an establishment having net work all over India, there shall be separate Standing Orders. If the certified standing orders provides for such kind of training and commitment of each trainee to serve at least for two years after training and repayment of training cost if he fails to comply with such provision, the same will be valid and maintainable. In order to show that you give training in the real meaning itself, you will have to provide for theory classes by qualified persons in addition to the routine practical training in the workshop. It should not be confined only to 'on the job' training which will be interpreted as an attempt to deprive of employees status and rights.
Proof of having given training is a matter to be incorporated within the organisation. The question of whether any training was given to an employee comes only when the issue of leaving service without serving the period is reported as termination of contract or violation of bond conditions. In such litigation, it is the duty of the employer to prove that the employee was given training incurring the amount claimed from the employee. For that it is advisable to maintain log books of sessions and other training records. The system can be made according to your own choice.
Regards,
Madhu.T.K
From India, Kannur
Most Appreciated Member
Proof of having given training is a matter to be incorporated within the organisation. The question of whether any training was given to an employee comes only when the issue of leaving service without serving the period is reported as termination of contract or violation of bond conditions. In such litigation, it is the duty of the employer to prove that the employee was given training incurring the amount claimed from the employee. For that it is advisable to maintain log books of sessions and other training records. The system can be made according to your own choice.
Regards,
Madhu.T.K
From India, Kannur
Most Appreciated Member
Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.
In India Bond is illegal as follws
As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that amounting to the violation of the rights mentioned under Article 19.
As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.
Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom its is enforced and if performed would violate principles of natural justices.
As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.
Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The court also has stated that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
Any complain on the company would land the Directors and Managing Directors of the company in Jail, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.
From India, Jaipur
Contributing Member
In India Bond is illegal as follws
As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that amounting to the violation of the rights mentioned under Article 19.
As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.
Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom its is enforced and if performed would violate principles of natural justices.
As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.
Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The court also has stated that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
Any complain on the company would land the Directors and Managing Directors of the company in Jail, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.
From India, Jaipur
Contributing Member
Hi Yajuvendra, Please find attached agreement doc. It might help you. Regards Vipin
From India, New Delhi
Contributing Member
From India, New Delhi
Contributing Member
Dear Folks,
Such agreements do not hold up in a court of law. In case you are imparting generic training to all employees, then it is a company policy to train for a specific job and no bond/agreement is really needed for the same. In case a special training is being organised for a specific person or two, then a bond does come inot play with a two way option. For example, a person is being abroad/some college for a duration during which s/he would be paid the entire salary but the employee would not be coming to work full time/not at all.
I do hope the difference is evident.
best regards
Ajay Chaudhari
From India, New Delhi
Contributing Member
Such agreements do not hold up in a court of law. In case you are imparting generic training to all employees, then it is a company policy to train for a specific job and no bond/agreement is really needed for the same. In case a special training is being organised for a specific person or two, then a bond does come inot play with a two way option. For example, a person is being abroad/some college for a duration during which s/he would be paid the entire salary but the employee would not be coming to work full time/not at all.
I do hope the difference is evident.
best regards
Ajay Chaudhari
From India, New Delhi
Contributing Member
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Agr. for training, apprentice with bond.doc