Labour & Service Law
Employment Bond
A clause in an employment contract requiring an employee to serve a minimum period, or repay training/education costs if they leave earlier.
Employment bonds are often used where an employer has invested significantly in training a new employee, requiring them to serve a minimum period or reimburse a reasonable, genuinely pre-estimated cost if they resign early.
Courts have generally upheld reasonable bonds tied to genuine costs incurred, while treating bonds that function more like a penalty for leaving, disproportionate to actual loss, with more scepticism.
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