Employment Bond: One way to face competition

To me employment bond is one way to face competition. Most of us have mentioned in this forum that one of the reasons for employment bond is to get back the money that the company spends in training an employee in case he/she leaves the organization by breaking the bond. However, I have also seen people (freshers) who immediately after joining an organization are placed in live projects without any training or negligible training (sometimes training period is less than a week and that too soft skills training). The term that is quite often used to describe such employees is batch-broken trainees.

So in such cases when a company does not spend any amount on training yet forces the employment bond on the employees, then the motive behind the bond is not to recover the costs spend in training rather it’s a way to face competition by stopping the employee from joining its competitors.

Again there are companies like RumDal Steel, Dalco etc that have a bond period of 3 years. Usually companies give the first promotion to its employees after 3 years (on an average) and so after an employee spends the bond period of 3 years it is natural that he would like to continue his service in the same company hoping to get a higher role and pay package. So this example again goes to prove that the primary motive of employment bond is to retain employees and to stop them from leaving the company.