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Draft of a Letter of Agreement for an Employee to Remain with the Company for a Minimum of Three Years in a Permanent Position

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Dear sir/mam, I am in need of a draft for an appointment letter that requires an employee to remain with the company for a minimum of three years. This is a permanent job, but for security reasons, the company requires this. I would be grateful for your prompt response to my query. Thank you.

  1. On the lighter side, the only available option is to not let the employee leave the office for three years! Ha! It’s not the appointment terms that make the employee stay, but the following points may help ensure a longer tenure: learning and development opportunities; growth that is proportional to performance; performance improvement plans; recognition of work; a friendly work environment; roles and responsibilities; a competitive salary that is in line with market standards; welfare benefits; transparent HR policies. I won’t say that all of these points will make the employee stay with the company permanently, but they could ensure a longer stay. As a short-term measure, you could consider issuing an indemnity bond for two to three years along with the appointment order. Alternatively, you could introduce a bonus in the employee’s salary that will be payable after three years, provided they stay with the company. Or, you could look into the feasibility of adding a retention salary component to the salary, which would be paid after three years, or 50% after one and a half years and the balance after another one and a half years. Nowadays, candidates are not just looking at salary. The best HR practices will ensure a long-term relationship.

  2. In addition to what has been said, when management reserves the right to end an employee’s contract with one month’s notice or more, the employee also has the same right to terminate the contract with one month’s notice if they are dissatisfied. The best HR practices and policies, as outlined, can help to retain employees.

  3. Rather than creating a bond with an employee, it is best to create a positive and engaging work environment. Assign tasks that are seen as challenging and rewarding. Contracts and agreements are not legally binding under our laws.

  4. What is the date when the ESIC rate reduction will take effect? Could you please provide assistance with this?

  5. Vaishali, Instead of creating a clause in an appointment letter to restrict an employee for three years, it may be more beneficial to make an agreement with the individual, where they will not be an employee. Alternatively, a one or two year bond may be more suitable, as three years is quite a long time in comparison to the current industry trends. To implement good practices into the organisation, which would eliminate the need for a bond or agreement to retain talent.

  6. Good afternoon, Could I please inquire about the wage structure for school housekeeping laborers? Thank you.

  7. No agreements or commitments will bind the applicant and legally it is not possible to take legal action. A bond may be established if the employer is investing a considerable amount of time and money for training and enhancing professional abilities and capabilities.

  8. You cannot keep staff members by binding them with a contract, as such contracts have little to no legal backing. Additionally, including such a restrictive clause may lead the candidate to question the atmosphere in your business. As other members have suggested, you should attempt to persuade the candidate that this is the ideal work environment.

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