Hello,

At the outset I must state that asking for Security Deposits/Caution Deposits is not a sound HR practice in my personal and professional opinion. I completely understand the reasons, compulsions and justifications behind such a practice. I am still NOT in favour of such a practice anyway.

Having said that, you may consider for solution the following points.

1. Will this money, by whatever name called carry interests at the market rates till your company holds the money?
2. What paper is your company willing to sign for having received the money and whatguarantee it offers to refund the maoney at predecided time or contingency?
3. Subject to the response to above questions, the company may agree to make a, say 10% deduction each month (with employee's written agreement before joining) till the desired amount is collected. This may take 10 months and the company will have to be patient till then. The issues like what may happen if the candidates stop attending work before the full amount is in the hands of the employer, whether in such contingencies can the amount collected till then be forfeited, etc. will have to be deliberated and decision/s arrived at.

As HR practitioners, we have to be morally, ethically and legally above board. It is a fine balance and a tough task. You are facing one at this stage. I have made a suggestion despite the fact that I am opposed to the very thought, because one has to be practical and in that matter one must be fair, transparent and considerate.

I hope, I am NOT complicating your situation.

Regards
Zameer