Our graduate trainee programme includes a service agreement for a fixed period after training. Are you comfortable signing it? What would you do if you got a better offer during that period?
Show hints
Show you understand why bonds exist, read the terms, and answer honestly.
Show the explanation
Model answer.
Background. Many companies and PSUs invest heavily in training freshers, so they ask them to sign a service agreement (bond) to serve for a certain period, with an amount payable if they leave early. Terms vary widely between organisations, so read the actual document.
What the interviewer wants. Whether you understand and accept the commitment, or whether you are likely to leave after training.
A good answer if you are comfortable
"Yes, I'm comfortable with it. I understand the company spends significant time and money training new engineers, and it's fair to expect them to stay and contribute. I'm looking for a place where I can build my career over several years, so a commitment of this length fits my plans. I would like to read the full terms before signing so I'm clear on the details."
On the "better offer" question. Be honest and consistent:
"If I sign an agreement, I intend to honour it. My aim right now is to get strong training and real project experience, and I chose to apply here for that reason. A slightly higher salary elsewhere wouldn't be a reason for me to break a commitment."
If you have a genuine concern (for example, you plan to do a master's degree), it is better to raise it now than to break the bond later:
"I'm comfortable with the agreement. I'd like to ask whether the company supports higher studies for employees during or after the bond period, because I may want to do an M.Tech in the future."
Sensible questions to ask (at the right stage, often with HR after selection)
- How long the bond period is, and whether it starts from joining or after training.
- The amount payable on early exit and whether it reduces over time.
Common mistake. Agreeing without reading the terms, or saying "yes" while privately planning to leave in six months.
Likely follow-up. "Where do you see yourself in five years?" Keep it consistent with staying and growing in the organisation.
Original UniCircle question. Last reviewed 28 Oct 2026.