Daughter's first offer letter has a two-year service bond. Is that standard now?

apricot_violin_7891

Our daughter finishes college this month and has been offered a job at an IT services firm. The letter says that if she leaves within two years, she repays a fixed amount towards 'training costs'. The amount isn't small, though it isn't ruinous either. She wants to sign, and her view is that she isn't planning to leave anyway. I'm not trying to talk her out of it, but I'd like to understand how these bonds work in practice. Do companies really pursue the money, or is it mostly there to discourage people? And did anyone's son or daughter regret signing one?

7 comments

  • basil_gecko_5351

    From the employer side: we tried a bond for juniors some years ago and dropped it. The ones who wanted to leave left and paid. The rest would have stayed anyway.

    • juniper_ribbon_90

      Same conclusion in my practice. A bond mostly keeps people who were staying anyway. What made a difference for us was a proper first year of training, which is what these bonds claim to pay for. Worth her asking what the training consists of, and who runs it.

  • saffron_quilt_8232

    Read the clause, not the summary in the email. Is it a fixed penalty, or 'costs incurred' that reduce month by month? The second is more common and more reasonable. Also check whether they want to keep her original certificates. That's the part I'd refuse.

  • silver_sketch_5324

    Our daughter is still in college, so this is ahead of us. One practical point: ask whether the two years run from the joining date or from the end of training. If training lasts three or four months, the real period changes quite a bit. We'll be reading letters like this in a couple of years, so I'm keen to hear what others say.

  • orchid_drum_2372

    'Do they pursue it' depends on the company. Some send a legal notice to everyone who leaves early, many don't bother with freshers. Neither is a reason to sign or not. The question for your daughter is simpler: would she be okay paying that amount if a better offer came along in a year? If yes, sign.

  • maple_paper_555

    my cousin signed one at 22 and left at 18 months for a master's. paid it from her savings and called it the most expensive lesson she ever had in reading the small print. no regrets about the job though

  • sage_drum_6121

    Not IT, but schools do a version of this too, a notice period with a penalty if you leave mid-year. Most teachers I know signed without a second thought and it was fine. The ones who had trouble were the ones who never kept a copy of what they signed 😅 Make sure she has her own copy, signed by both sides.

  • cedar_ladle_845

    My children are still studying, so I haven't seen this from the parent side. But when I take on help for my daycare I have thought about asking for a commitment, and decided against it. If the work and the people are good, they stay. I'd let her sign and judge the company by how the first year goes.

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