HR Law Hotline: The Paradox Of Train But Retain: Impact Of TRAs On Employee Mobility

This article was first published by BWPeople on November 10, 2023.

SUMMARY

The corporate market is stormed with intense competition. Companies heavily invest in training their workforce to outshine competitors. Yet, as these trained employees become more skilled and employable, a paradox emerges which companies must confront – the exodus of their trained talents in pursuit of “better” opportunities. This exposes employers to not only monetary losses but also project bottlenecks affecting their industry credibility. To avoid such issues, some employers prefer to sign a contract with new employees or employees who are provided expensive trainings for upskilling to ensure recovery of training costs if such employees depart before serving for a minimum retention period. Such contracts are popularly termed as training contracts or bonds.

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