PRE PLACEMENT AGREEMENT

Sep 30, 2023
3 min read

Meaning of Pre-placement agreement

A pre-placement agreement, also known as a pre-employment agreement or an employment offer letter, is a legal document used by employers to detail the terms and conditions of employment that a candidate must accept before beginning a new position. It acts as a legal and contractual agreement between the prospective employee and the employer. Most students nowadays aspire to pursue studies that will lead to employment. Placement agencies bring multinational corporations, large corporations, and enterprises to these universities to hire students as workers. Interviews are used by companies to choose applicants. Companies issue offer letters after being chosen. If the students agree, they will be required to sign a Pre-Training and Placement Agreement. Companies shall give training for the role for which they are hired, according to this agreement. Only the employment will become permanent if they complete the training. Every contract is written by the Indian Contract Act of 1872. These terms were also observed in the pre-placement Agreement.

Important clauses of this agreement;

In this agreement, there are two parties. One party is the employee and the other party is the company.
The agreement must mention the position for which the employee has been given the offer letter.
The Company will provide proper training for performing the duties of the chair for which he is appointed.
The company will also agree to impart knowledge to the employees.
The employee has to accept the conditions on which the company will provide training and he/she will follow all the rules and schedules of training.
As per the company's rules, it will fund all the training costs.
The company will provide training for a specific period. The employees have to maintain the training period without absence.
The starting date will be counted from the joining date as per mentioned in the offer letter.
The employee has to agree that
he will not make any absence during the training session.
that he/ she shall not give any resignation from his or her employment with the Company, or
he/shall not do any actions/ omission which may give the Company sufficient reasons to terminate the employment of the Employee, before the expiry of terms from the date of joining specified in the Employee's appointment letter/ offer letter.

According to the agreement, the Employee must agree to accept the terms and conditions as well as the policies as prescribed by the Company from time to time. Moreover, the agreement will say that the employee will utilize the information and skills learned from the training to benefit the company. As such, the agreement must state that the corporation has the right to terminate the employee's employment if he or she breaks any of the obligations. If an employee violates the terms of his or her employment, the company may seek reimbursement for the money spent on the person's cost and training. and the employee agrees to pay the sum on demand by the Company. Furthermore, if the Employee neglects in his/ her performance of his duties towards the Company while undergoing the training, then the Company has complete authority to initiate disciplinary proceedings against the Employee. Thus, the laws of India shall govern this Agreement.

Purpose of Pre-Placement Agreement:

The purpose of a pre-placement agreement is to ensure that both parties have a clear understanding of the terms and conditions of employment, which can help prevent misunderstandings and disputes in the future. Once both parties have signed the agreement, it becomes a legally binding contract, setting the stage for a successful and mutually beneficial employment relationship. Therefore, A pre-placement agreement serves to protect the interests of both parties by providing clarity and preventing misunderstandings regarding the terms and conditions of employment. It's important for prospective employees to carefully review and understand the agreement before signing, and they may seek legal advice if needed to ensure that the terms align with their expectations and needs.

Conclusion:

Before starting a new job in a company, an employee should understand about his or her rights and responsibilities. It is the initial chapter of one's professional life. As a result, the connection should stay open. Companies utilize the terms provided to attempt to avoid any form of litigation.