What is a employment bond?

An employment bond is a legal agreement between an employer and an employee that binds the employee to work for the employer for a specified period of time. The terms of an employment bond may include conditions such as minimum service period, notice period, compensation, and other clauses. The purpose of an employment bond is to protect the employer from investing in an employee who may leave the company before completing a certain period, thereby causing loss to the company. It is also used to protect the employee from leaving the company abruptly without fulfilling the agreed-upon terms. An employment bond is a legally-binding document that should be carefully read and understood by both parties before signing. Breach of an employment bond can result in legal consequences for the defaulting party.