RBE No. 62/1986: Training – Recovery of Cost of Training on Leaving Railway

No.E(NG)I-84 AP/9, dated 11.04.1986

Sub: Forwarding of application from serving Railway employees for posts outside the Railways – Recovery of cost of training and enforcement of bond.

1. Reference Exception under paragraph 1(2) of Railway Board’s letter No.E(NG)57 RC1/56, dated 21.01.1961 which provides that where applications of railway servants are forwarded for non-railway posts under the conditions stipulated therein, an undertaking should be obtained from them to the effect that they would refund the cost of training when leaving railway service on selection. A corresponding provision also exists in the Agreement Form/ Indemnity Bond executed by Apprentices/ Trainees on entering Railway Services.
2. Subsequently, it was decided vide Board’s letter No.E(NG)II-77-AP-6, dated 09.02.1979 that non-gazetted employees who have not received training at Railway expenses in a specific avocation but only have been given an “induction course” to make them suitable to the working needs of the Railway may be exempted from refunding the cost of training in the event of their selection to other posts under the Central Government/ State Government or in Public Sector Undertakings.
3. The Department of Railways have now decided that in the case of non-gazetted employees who have received “induction training” and who leave Railway service with proper prior permission of the competent authority to join employment under the Central Government, a State Government, a Public Enterprise wholly or partly owned by the Central Government or a State Government or an autonomous body wholly or substantially owned/ financed/ controlled by the Central Government or a State Government, a fresh bond should be taken from such employees to ensure that they serve the new employer for the balances of the original bond period.
4. With a view to ensuring that the requirement of obtaining a fresh bond from a person, where necessary, is fulfilled the Railway Administration with whom the employee has executed the original bond, may at the time of forwarding of his application (and if it is not possible, before his release) for another post, my write to the Department/ organization under whom the employee intends to take up another appointment, intimating them about the bond obligation of the individual and clarifying that in the event of his selection for the new post, his release will be subject to the condition that the new department/ organization obtains from him a fresh bond binding him to serve them for the balance of the original bond period, and in case he fails to serve the new department/ organization, or leaves it before completion of the original bond period, for a job, where exemption from bond obligation is not available, the proportionate bond money should be realized from the individual and refunded to the Railway Administration, with whom he has originally executed a bond. The Ministry/ Department/ Organization, where the person is now employed, should also duly intimate the original Ministry/ Department/ Organization, the fact of a fresh bond having been executed by the person concerned.
5. A doubt has also been raised to whether the word ‘training’ covers apprenticeship and whether exemption from recovery of expenses, as laid down in these instructions, includes payments made to an individual in the shape of training allowance or stipend. It is hereby clarified that these instructions are not restrictive, but cover all aspects of training, including apprenticeship. It is further clarified that exemption from recovery of expenses applies to all types of expenditure – direct or indirect – including payments made as training allowance or stipend.
6. These instructions will also apply to cases where a Railway employee has been selected for a post/ service (other than private employment), for which he had applied before joining the Railway, with whom he has executed a bond.

Download Railway Board Circular RBE No. 62/1986

Forward reference ⇒RBE No. 09/1995