TRAINING BOND & SERVICE AGREEMENT POLICY

SECTION 1 - PURPOSE AND SCOPE

1.1 Policy Objectives

1.1.1 This policy establishes:

(a) Framework for training bonds and service agreements

(b) Employee obligations when receiving Company-sponsored training

(c) Service period requirements after training completion

(d) Bond amount calculation methodology

(e) Pro-rata recovery mechanism for early exit

(f) Enforceability conditions under Indian contract law

1.2 Rationale for Training Bonds

1.2.1 Training bonds protect Company's investment by:

(a) Ensuring return on investment in employee development

(b) Preventing immediate attrition after expensive training

(c) Recovering costs if employee leaves before value delivered

(d) Encouraging employee retention and commitment

(e) Discouraging competitors from poaching trained employees

1.2.2 Training bonds are legitimate under Indian law when:

(a) Training is specialized, substantial, and beyond ordinary skill development

(b) Reasonable service period imposed (typically 1-2 years)

(c) Bond amount reflects actual training costs incurred

(d) Employee voluntarily agrees in writing

(e) Terms are clear, transparent, and reasonable

1.3 Scope of Application

1.3.1 This policy applies to:

(a) Specialized technical training and certifications

(b) External training programs, courses, and workshops

(c) Professional certifications and qualifications

(d) Higher education sponsorship (degrees, diplomas)

(e) International training or conferences

(f) On-the-job specialized training of significant value

1.3.2 Does NOT apply to:

(a) General onboarding and orientation

(b) Routine skill updates or refresher training

(c) Mandatory compliance training

(d) Company-mandated training for current role performance

(e) Training of minimal cost (below ₹25,000)

SECTION 2 - TYPES OF TRAINING SUBJECT TO BOND

2.1 External Certifications and Courses

2.1.1 Professional certifications including:

(a) Cloud Certifications: AWS, Azure, GCP certifications (Associate, Professional, Specialty)

(b) Technology Certifications: Oracle, SAP, Salesforce, Microsoft, Cisco

(c) Project Management: PMP, Prince2, Scrum Master, Agile certifications

(d) Security Certifications: CISSP, CEH, CISA, CompTIA Security+

(e) Industry Certifications: Any certification relevant to job role

2.1.2 Training programs and courses:

(a) Specialized technical training (AI/ML, Data Science, Blockchain, etc.)

(b) Leadership and management development programs

(c) Professional skill development (negotiation, communication, etc.)

2.2 Higher Education Sponsorship

2.2.1 Degree programs:

(a) MBA, MS, MTech, or other master's degrees

(b) Executive education programs

(c) Diploma or certification programs

2.2.2 Sponsorship may include:

(a) Full or partial tuition fees

(b) Exam fees and course materials

(c) Study leave with pay

(d) Travel and accommodation (if applicable)

2.3 International Training and Conferences

2.3.1 Overseas training including:

(a) International certification boot camps

(b) Global conferences and summits

(c) Client-site training abroad

(d) Technology vendor training overseas

2.3.2 Costs may include:

(a) Course or conference registration fees

(b) International airfare and travel

(c) Accommodation and living expenses

(d) Visa and insurance costs

2.4 On-the-Job Specialized Training

2.4.1 Internal training of substantial value:

(a) Multi-month specialized technology training program

(b) Mentoring by senior experts or external consultants

(c) Proprietary technology or methodology training

(d) Client-specific niche technology training

2.4.2 Bond applicable if:

(a) Training duration exceeds 3 months

(b) Significant Company investment in trainer costs or resources

(c) Training provides marketable skills beyond current role

SECTION 3 - TRAINING BOND AGREEMENT

3.1 Written Agreement Requirement

3.1.1 Before commencing training, employee must sign:

(a) Training Bond Agreement or Service Agreement

(b) Agreement specifies:

• Type and description of training
• Total training cost and bond amount
• Service period required (post-training)
• Pro-rata recovery formula
• Consequences of early exit
• Acknowledgment and acceptance

(c) Agreement signed by employee and authorized Company representative

(d) Witnessed and dated

3.1.2 No training provided without signed agreement.

3.2 Voluntary Nature of Training

3.2.1 Employee participation in bonded training:

(a) Voluntary and at employee's request or consent

(b) Employee may decline training if unwilling to accept bond terms

(c) Declining training does not affect current employment

(d) Voluntariness makes bond enforceable under law

3.2.2 Exception - mandatory training:

(a) If training mandatory for job performance, no bond applicable

(b) Training for client project or business need = Company's obligation

(c) Bonds only for voluntary specialized development

3.3 Disclosure and Transparency

3.3.1 Training bond terms clearly disclosed:

(a) Total cost of training itemized

(b) Service period duration specified

(c) Recovery formula explained with examples

(d) Employee has opportunity to review and seek clarification

(e) No hidden terms or surprise obligations

SECTION 4 - BOND AMOUNT CALCULATION

4.1 Components of Training Cost

4.1.1 Bond amount covers actual costs including:

(a) Direct Training Costs:

• Course or certification fees
• Exam fees
• Study materials and books
• Training equipment or software licenses

(b) Travel and Accommodation:

• Airfare, rail, or transport costs
• Hotel accommodation
• Daily allowances or per diem
• Visa and travel insurance

(c) Trainer and Venue Costs:

• External trainer fees
• Training venue rental
• Equipment and infrastructure costs

(d) Opportunity Cost (if applicable):

• Salary paid during full-time training period when not working
• Lost productivity during training period

4.1.2 Bond amount does NOT include:

(a) Regular salary for part-time or after-hours training

(b) Overhead or administrative costs

(c) Future benefits to Company from employee's skills

4.2 Reasonable Bond Amount

4.2.1 Bond amount must be reasonable and proportionate:

(a) Reflects actual documented expenses

(b) Not inflated or punitive

(c) Supported by invoices, receipts, and records

(d) Excessive bonds may be deemed unenforceable by courts

4.2.2 Typical bond ranges:

(a) Short certifications (1-2 weeks): ₹50,000 - ₹2,00,000

(b) Major certifications (1-3 months): ₹1,00,000 - ₹5,00,000

(c) Higher education (MBA, MS): ₹5,00,000 - ₹20,00,000

(d) International training: ₹2,00,000 - ₹10,00,000

SECTION 5 - SERVICE PERIOD REQUIREMENTS

5.1 Standard Service Periods

5.1.1 Service period based on training cost and duration:

(a) Training cost < ₹1,00,000: Service period = 1 year

(b) Training cost ₹1,00,000 - ₹5,00,000: Service period = 1-2 years

(c) Training cost > ₹5,00,000: Service period = 2-3 years

(d) Higher education (degree programs): Typically 2-3 years

5.1.2 Service period:

(a) Begins from date of training completion or certification

(b) Calculated in calendar months

(c) Clearly specified in training bond agreement

5.2 Reasonable Service Period

5.2.1 Service period must be reasonable:

(a) Proportionate to training investment

(b) Not excessively long (courts may invalidate bonds >3 years)

(c) Industry standard: 1-2 years for most training

(d) Longer periods justified only for substantial investments (degrees)

5.3 Counting Service Period

5.3.1 Service period counted from:

(a) Completion of training or certification date

(b) Not from start of training

(c) Approved leave during service period does not extend period

(d) Unauthorized absence extends service period proportionately

SECTION 6 - PRO-RATA RECOVERY ON EARLY EXIT

6.1 Recovery Formula

6.1.1 If employee resigns before completing service period:

Recovery Amount = (Bond Amount) × (Unserved Months ÷ Total Service Period Months)

(a) Example calculation:

• Bond amount: ₹3,00,000
• Service period: 24 months
• Served: 10 months, Unserved: 14 months
• Recovery: ₹3,00,000 × (14 ÷ 24) = ₹1,75,000

6.1.2 Straight-line pro-rata method:

(a) Equal monthly depreciation of bond amount

(b) Fair allocation of training value over service period

(c) Partial service credit provided

6.2 Recovery Mechanism

6.2.1 Recovery from final settlement:

(a) Deducted from final settlement (F&F) at time of separation

(b) Adjusted against:

• Outstanding salary
• Leave encashment
• Bonus or incentives
• Gratuity (if permissible)

(c) If final settlement insufficient, employee pays balance

6.2.2 Payment terms:

(a) Due before last working day or relieving

(b) Payment via bank transfer or cheque

(c) Relieving letter withheld until payment

(d) Legal action for recovery if employee defaults

6.3 Alternative Payment Arrangements

6.3.1 Employee may request:

(a) Installment payment plan (if bond amount large)

(b) Negotiated settlement (if genuine hardship)

(c) Buyout by new employer

6.3.2 Company may approve at discretion:

(a) Installments over 3-6 months

(b) Post-dated cheques or promissory notes

(c) Reduced amount in exceptional cases (rare)

SECTION 7 - EXEMPTIONS AND WAIVERS

7.1 Full Waiver Scenarios

7.1.1 Training bond waived if employee separated due to:

(a) Company-Initiated Termination:

• Termination by Company for business reasons (redundancy, restructuring)
• Not applicable if termination for misconduct

(b) Medical Reasons:

• Permanent disability preventing work
• Supported by medical documentation

(c) Death:

• No recovery from deceased employee's estate or family

7.1.2 Waiver not automatic - requires case-by-case evaluation.

7.2 Partial Waiver

7.2.1 Reduced recovery in exceptional circumstances:

(a) Serious family emergency requiring relocation

(b) Spouse transfer to different city (for married employees)

(c) Health issues (own or immediate family) requiring resignation

7.2.2 Requires:

(a) Written application with supporting documents

(b) Management review and approval

(c) Partial waiver (e.g., 50% reduction) considered

7.3 No Waiver for Voluntary Resignation

7.3.1 Bond NOT waived for:

(a) Resignation for higher salary or better opportunity

(b) Joining competitor or starting own business

(c) Personal reasons without exceptional circumstances

(d) Relocation by choice

(e) Performance issues or disciplinary concerns

SECTION 8 - ENFORCEABILITY UNDER INDIAN LAW

8.1 Legal Framework

8.1.1 Training bonds enforceable under Indian Contract Act, 1872:

(a) Contract freely entered into by both parties

(b) Consideration provided (Company invests in training)

(c) Terms clear, reasonable, and not against public policy

(d) Liquidated damages (bond amount) is genuine pre-estimate of loss

8.1.2 Courts have upheld training bonds when:

(a) Training specialized and adds significant value

(b) Service period reasonable (typically 1-2 years)

(c) Bond amount reflects actual training costs

(d) Employee voluntarily agreed

(e) Not in restraint of trade (Section 27 of Contract Act)

8.2 Distinction from Non-Compete

8.2.1 Training bond is NOT a non-compete:

(a) Does not restrict employee from working elsewhere

(b) Does not prevent employee from joining competitor

(c) Does not restrain trade or livelihood

(d) Only requires financial compensation for early exit

(e) Therefore enforceable unlike non-compete clauses

8.3 Key Enforceability Criteria

8.3.1 For bond to be enforceable:

(a) Training Specialized: Beyond ordinary skill development or job training

(b) Voluntary: Employee willingly accepted training and terms

(c) Reasonable Period: Service period not excessive (1-3 years acceptable)

(d) Actual Costs: Bond reflects documented training expenses

(e) Clear Agreement: Written agreement with specific terms

(f) Not Punitive: Amount is compensation, not penalty

8.4 Unenforceability Risks

8.4.1 Bond may be challenged if:

(a) Training was mandatory for current job performance

(b) Service period excessively long (> 3 years may be questioned)

(c) Bond amount inflated beyond actual costs

(d) Terms ambiguous or not clearly disclosed

(e) Employee coerced or misled into signing

(f) Training generic and not specialized

8.4.2 Company ensures enforceability by meeting all legal requirements.

SECTION 9 - EMPLOYEE OBLIGATIONS

9.1 During Training Period

9.1.1 Employee must:

(a) Attend training diligently and complete requirements

(b) Pass certification exams (if applicable) within specified timeframe

(c) Not abandon training midway without approval

(d) Maintain discipline and professionalism

(e) Represent Company positively during external training

9.1.2 Failure to complete training:

(a) Bond still applicable for costs incurred

(b) May result in disciplinary action

(c) Future training opportunities affected

9.2 During Service Period

9.2.1 Employee must:

(a) Serve full service period from training completion date

(b) Apply newly acquired skills in work assignments

(c) Transfer knowledge to team members if appropriate

(d) Continue employment in good standing

9.2.2 If planning to resign during service period:

(a) Understand bond recovery will apply

(b) Follow normal resignation process (Separation Policy)

(c) Settle bond amount per pro-rata formula

9.3 Certification Maintenance

9.3.1 If certification requires renewal or continuing education:

(a) Company may sponsor renewal costs

(b) Additional service period may apply for renewals

(c) Employee responsible for maintaining certification validity

SECTION 10 - COMPANY OBLIGATIONS

10.1 Training Delivery

10.1.1 Company ensures:

(a) Training is high-quality and delivers promised value

(b) Training provider is reputable and accredited

(c) Employee has reasonable opportunity to complete training successfully

(d) Support provided for exam preparation and certification

10.2 Documentation

10.2.1 Company maintains:

(a) Records of training costs with invoices and receipts

(b) Signed training bond agreements

(c) Training completion certificates

(d) Service period tracking

10.2.2 Documentation available for audit or legal purposes.

10.3 Fair Application

10.3.1 Company applies policy:

(a) Consistently across all employees

(b) Without discrimination or favoritism

(c) With transparency and fairness

(d) Considering genuine hardship cases for waivers

SECTION 11 - SPECIAL SCENARIOS

11.1 Termination for Misconduct During Service Period

11.1.1 If employee terminated for serious misconduct during service period:

(a) Bond recovery still applicable

(b) Employee liable for unserved portion

(c) Deducted from final settlement

(d) No waiver for misconduct termination

11.2 Multiple Training Programs

11.2.1 If employee receives multiple training programs:

(a) Separate bonds for each training OR

(b) Combined bond with cumulative service period

(c) Service periods may overlap or run consecutively

(d) Clearly specified in respective agreements

11.3 Transfer or Promotion During Service Period

11.3.1 If employee transferred or promoted:

(a) Service period obligation continues

(b) New role does not reset or waive bond

(c) Service period counted from original training completion

11.4 Training Abandonment

11.4.1 If employee abandons training midway:

(a) Costs incurred up to abandonment point recoverable

(b) Pro-rata bond applicable

(c) May result in disciplinary action

SECTION 12 - DISPUTE RESOLUTION

12.1 Dispute Process

12.1.1 If employee disputes bond recovery:

(a) Raise written objection to HR with grounds

(b) HR reviews case and responds within 15 days

(c) If unresolved, escalate to management

(d) Management decision is final

12.1.2 Common disputes:

(a) Disagreement on bond calculation

(b) Claim training was mandatory, not voluntary

(c) Challenge to service period counting

(d) Request for waiver or reduction

12.2 Legal Recourse

12.2.1 Either party may pursue legal action:

(a) Employee may challenge enforceability in court

(b) Company may file suit for recovery if employee defaults

(c) Arbitration clause may apply if specified in agreement

SECTION 13 - CONTACT INFORMATION

13.1 Training Bond Questions

Learning & Development Team:
Email: learning@webreinvent.com
For training programs and bond agreements

13.2 Bond Recovery and Settlement

Human Resources:
Email: hrd@webreinvent.com
For bond calculations and payment arrangements

13.3 Waiver Requests

HR Head:
Email: hrd@webreinvent.com
Subject: Training Bond Waiver Request - Employee Name