Legal Question in Employment Law in India

I am attached to an IT Training company We-on a honorary basis till 15th March for the work related to H.R.

Since presently I am in Vijayawada and unable to come hence I request you to kindly advise me based on Legal point of view on the following -

i) We-intend to have trainees (science/engineering educated unemployed youth) who will be trained in specific modules (Linus BASH Programming) prepared by our technical team for 3 months.

ii) We-will give them Offer Letter which will state that they will be trained and placed.

iii) We-do not want to charge anything nor want to anything to them and want to provide training free of cost.

iv) Our-revenue may come from the payment which it may get from the companies where these trainees will be placed by We-post completion of training.

v) Many candidates may leave We-and take job else where based on our training.

vi) Our-concern is What if, the candidate do not want placement and leave

them or leave in between before completion of training.?

vii) Can we put a clause in the Offer Letter given to trainees as follows:-

"In case you leave us before completion of training or do not want to get placed then you have to remit us Rs.20,000/(say) towards cost of training."


Asked on 2/28/15, 8:36 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

28.02.2015

Dear Sir / Madam,

No, since you are volunteering to train candidates free of cost for a period of three months, you cannot insert a clause in the Offer Letter compelling the trainees to pay you a sum of money towards cost of training. If you are guaranteeing a placement to the candidate(s) on successful completion of training, in my opinion, you may insert a clause that the successful candidate agrees to remit a certain percentage say 25% to 30% of his / her first month's Gross Monthly Salary to your training institute towards subsidized training fees.

Regards,

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Answered on 2/28/15, 10:36 am


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