On The Job Training Agreement Draft Format




This agreement (“Agreement”) is made on this the _________ day of ________, 20__,


Mr / Ms ______________ S/o D/o W/o __________ residing at ____________ (hereinafter called “the Employee” which expression shall be deemed to include his/her legal heirs, representatives, successors) of the ONE PART. 


_____________________, a Company incorporated under the Companies Act 1956, having its registered office at ________________________ (hereinafter called “the Employer”, which expression shall deem to include its legal representatives, successors and permitted assigns) of the SECOND PART. 

WHEREAS the Employee is presently employed on the rolls of the Employer, and as part of his / her employment that he should undergo necessary training to effectively perform his services to the company and for which he is being sent to_____________ by the Employer for a period of ______ weeks. 

AND WHEREAS the employee is aware that the company would be spending substantial amount of money and time on account of the aforesaid training and the Employee has assured the Employer that he/she will demonstrate good behavior during the tenure of his/her training abroad and will successfully complete the assigned Training programme. 

AND WHEREAS the Employee further undertakes and assures the Employer that he/she will serve the Employer for a minimum period of ______(___) years after returning from the Training on the terms contained herein below. 

AND WHEREAS the parties are desirous of reducing the terms of the Agreement in writing. 



1. That the Employee has been selected as ________with the Employer. To effectively perform the services for which he/she has been appointed the company has agreed to sponsor the employee to acquire necessary training in this regard and for which purpose is being sent to abroad.


2.  The selection envisages imparting training in __________________________, which are confidential.


3. The Employee assures and undertakes that the Employee shall complete the training diligently and also undertakes to serve the Employer for a minimum period of 2 (Two) years after returning from the training, as per the terms of his/her terms of employment.


4.   Any action by the Employee of:

a)  Failing to complete the training for which he/she has been selected for reasons other than ill health, PROVIDED THAT such ill health is not the result of his/her own neglect, carelessness or misconduct regarding which the certificate of the Medical Officer nominated by the Company shall be conclusive; and /or

b) Not conforming to or complying with the instructions regarding training and discipline conveyed to him/her by or on behalf of the Company; and/or

c) Failing to report forthwith on arrival to India, after successful completion of his/her training and to rejoin the post originally held in the Company on the terms and conditions of his employment; and/or

d) Refusing to serve the Company for a minimum period of two (2) years after the successful completion of training; and /or

e)  Failing to observe the rules and regulations governing the terms and conditions of service for the time being in force during his/her training or service period as aforesaid;


shall be deemed to be violative of the assurances and undertakings of the Employee to the Employer.


5.  On any violation of the above terms contained in para 4 above of this on the job training agreement, the Employee shall forthwith pay, as liquidated damages, to the Employer on demand the following sums in the manner specified below:

   Prior to completion of 12 months after training - Rs. _____

  After completion of 12 months but before completion of 18 months after training - Rs. _______

  After completion of 18 months but before completion of 24 months after training amount payable shall be prorated and recovered.


6. The employee and the Company agree that the amounts so calculated, on the basis described above is a genuine, fair, reasonable, estimate of the damages or loss that would accrue to the company in the event the employee discontinues his service to the Company. In the event the employee fails to make the aforesaid payment the Employer shall be entitled retain all or any payments that may be payable to the Employee including all benefits till realization of the sum from the Employee.


7.  The Employee shall be discharged only upon making such payment to the Company for breach of any/all of the above obligations.


8. That during the period of training, and during such period from the date of the Employee’s return, for which it has been made incumbent upon, the Employee to serve the company, the Employee undertakes:

a)  Not to take employment or obtain work, in any capacity or under any designation, with any other person, firm or company, whether in India or elsewhere, whether for consideration, or otherwise; and/or

b)  To refrain from absenting himself from work without reasonable cause during both the period of training as also upon his return to India for the entire period for which he is stipulated herein as having to work for the company; and/or

c) That during the period of training, and during such period thereafter for which the Employee is envisaged herein as having to work for the company, he does not conduct himself in a manner unacceptable to the Company or commit any act subversive of discipline, or otherwise misbehave in such a manner, as would reasonable be construed as giving the company cause for terminating his services.


9.  All communications between the Employee and the company shall be deemed to have been effectively served if addressed to the following addresses:


Employee’s Address




Employers Address




10. All disputes or differences whatsoever arising between the parties out of or relating to the construction, meaning and operation or effect of this on the job training agreement or the breach thereof shall be settled by Arbitration in accordance with the Rules of Arbitration of the Indian Council of Arbitration and the award made in pursuance thereof shall be binding on the parties.

IN WITNESS WHEREOF, the parties have hereto respectively put their signature at ___ on the day, month and year first above written.


SIGNED AND DELIVERED                                            SIGNED AND DELIVERED


For and on behalf of< Company>

                                                                                                By within named Employee

_________________ _________

Authorized Signatory


In the presence of:

1. __________________


2. __________________

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