Post your query
Any of you bond staff if they go for training courses.
Normally what's the practice for other companies. My company send
staff for training courses that costs from $100-$1000 but do not bond
the staff. Is this the normal practice? Under what circumstances should
we bond a staff that'll not make the company appear too calculative?
1. I make it a policy NOT to bond staff on any course that
benefits the company as much as the individual. I make it a point to my
managers that it is their job to make sure the individuals are
properly deployed and their interest is maintained. It is our philosophy
that a the fault for a staff that quits is in large part the fault of
2. We do bond our staff who attended training courses sponsored by the
company. However, the need for a bond period (ranging from 1-3 years)
shall depends on the relative training cost and the length of service of
the employee. The longer an employee works with the company and the
lower the relative training cost, the shorter will be the bond or in
some cases there is no requirement for a bond.
We only ask an employee to refund the course fee if he/she breaks the
bond. The amount of the course fee to be refunded shall be pro-rated in
proportion to the months served.
3. Yes, we only bond our staff if training courses cost more than $2000
and bond starts from 6 months.
4. In my company, we divide into training courses into 2 categories.
Cat 1 are the seminars, workshop,
briefings which can range from a couple of hours to a few days.
There is no bond in this category.
Cat 2 are for the pursue of diploma and degree courses. There is however
a 1 year bond. This is irregardless whether its a 1 year diploma course
or a 3 year degree course. The company, however do not sponsor the full
course fee but at US$3,500 per year for registration, course and exam
fee. This is claimable upon submission of results. One can
submit the claim as and when they finished a
module and are able to produce the result of the module.
5. We only bond our employees for a year for Advanced Diploma and Degree
courses. Rest of our certificate course etc no bond applicable.
6. Our employees supported on the Educational Assistance Program will be
required to serve a period of bond only if their course fees are
above S$10,000 as per the following scheme:
S$10,000 to S$20,000 - 1 year bond
S$20,001 to S$30,000 - 2 years bond
S$30,001 to S$40,000 - 3 years bond
For seminars/workshops, no bonding required.
Resignation Before Completion of Studies
When an employee resigns, without having completed his/her studies, the
employee will have to refund to the company the total amount reimbursed
up to that point. This refund must be made before the end of the
employee's notice period.
Resignation After Completion of Studies
When an employee resigns, after having completed
his/her studies, and is still serving the bond - the employee will have
to refund the pro-rated total fees incurred by the company for the uncompleted
period of bond
Termination Of Employment By Employer
When an employee has his/her employment terminated by the
Employer, the employee will not have to pay back anything. This will
before the employee completes the course; or after the employee
completes the course and is serving the bond.
7. I totally agree that training is part of business investment that
both managers and employees must not take for granted. Job-based
training is business requirement, therefore, we do not bond.
Businesses should be able to plough back such investment in short term.
Personal development like diploma or degree, we bond them for max of 1
year. Personal development grant is only disbursed if we are sure that
they have a career path with the company, therefore extended bond is not
required. Minimum of one year's bond is required to control such
application and to help employees have some time to prepare for career
extension. Investment of such nature takes longer for business to
8. We have an Education Sponsorship Programme whereby all confirmed
employees with more than one year of service are eligible to apply. The
course must be related to the employee's job and reimbursement covers
the course fee, book allowance, registration, membership and examination
fees. The employee will be expected to serve a bond upon successful
completion of the course.
So far the average bond is about 3 years as most of the sponsored
courses are Degree courses which amount to $20K. All other short term
training courses are not bonded.
You mentioned that there is no bonding required for
seminars/workshop. But what if this seminar/workshop fees cost more than
the usual diploma or advance diploma course? E.g.. A 3-days
seminar may cost S$3,000 whilst a 1.5 year HRM diploma course may cost
S$1,500 after subsidy. Could you please explain how to handle such
situation in terms of bonding?
Bonding is a policy issue. You need to be very clear as to
*why* you bond a staff for training & educational support. Most
organisations bond staff who undertake a company sponsorship for
certificated programmes regardless of $$$ spent. Most often then not,
these programmes are perceived to be "transferable knowledge &
skills" and makes one more mobile. Thus the organisation may want
to put in measures to ensure staff stay for a *reasonable* period of
time after programme completion.
On the other hand, these days seminars and conferences may cost as much
as some cert/dip programmes. So do you also institute bonding for these?
You need to think very carefully. Quite a few staff will think twice
about attending if there is a bond attached. On the other hand the
workshop/conference may be job specific thus benefiting the company if
I address this problem in my company using two very clear criteria:
1. Bonding kicks in if the programme is of a Dip cert and above.
2. If the amount for training exceeds $10,000 (excluding salary) we
I would appreciate if anyone can share with me a sample
letter on: Refund all sponsored course fees when an employees resign
before completion of studies
The refund stated in our letter to the trainee goes like
this: " (a) It is further agreed that should the trainee resign
from the service of the Company during the scholarship, the trainee
and/or the sureties shall be liable to pay the company the actual amount
of course fees and any other
monies granted to him plus 10% compounded interest per annum (b) if the
trainee should resign from the service of the company during the bonded
period, the trainee and/or the sureties shall pay the company liquidated
damages pro-rated against the time remaining from the date of cessation
service to the very last day of the bonded period."
Liquidated damages refers to the course fees, book allowance plus 10%
compounded interest per annum.
I am setting up policy on educational sponsorship e.g.
diploma/degree courses. What is the are the policies if company
pay for employee. The
following question that would seek your advice.
1. Is payment made to institute or employee upon registration of
education course (full lump sum or partial)
2. How should the co. reimburse to the employee, base on passing result,
is there a guideline.
As I have been questioned why should the employee pay for their course
first since the company is sponsoring and as the company does not want
to restrict on passing result, it should not be putting much pressure on
1. Common practice in sponsoring the employees are either:-
a) Company to pay the course fee/s and requires the employee/s to be
bonded for a period of time subject to the cost of the education. Or
b) Employee/s to pay the course fee/s first and upon passing of the
modules or whole course before the company will reimburse the
Employee/s requires to submit the original receipt and copy of result
slip (require to verify with the original result slip) before
reimbursement. Likewise if your employee/s do query on suggestion 2,
then you will have to consider what if they didn't pass their modules or
whole course. Is the company willing to fork out another amount for
their supplementary paper??
Chng Poh Hoon
2. In my ex co., employee who seeks for educational
sponsorship from the co. is required to make his/her own registrations
and payment to the respective Institutes. Reimbursement will be made
upon completion of each semester/module. The employee is required to
submit the original
receipts and a copy of the result slip for verification before
reimbursement. The co. will not make reimbursement if the employee fails
any one of the subjects in the semester. And the co. will only
subsidized 75% of the full course fees i.e. inclusive of the examination
fees for the first attempt, registration fees and laboratory tests if
any. The employee will be bonded upon successful completion of the whole
course. In the event that the course is SDF supported, the co.
will fully sponsored the employee for the whole course. If that is the
case, the employee does not have to make any payment for the course and
will be bonded.
Even if it is the decision of the management to send the employee for
further studies due future career plans, the company will pay for the
whole course fees and the employee will be bonded upon successful
completion of the whole course.
Since we are discussing about this topic, I'm also in the
mist of writing a similar policy. Would appreciate that you share with
me the bond period for Certificate and Diploma programs and how does
your company determine the bond period, i.e. based on the total course
fees or years of service with the company or a combination of both?
Should be a combination of both and the bond period
determined by 1-2 years depends on your nature of business/policy.
Chng Poh Hoon
Post your query