Employment Bond

1. Concept

“Employment bond” – refers to a contractual stipulation requiring an employee to stay employed with the employer for a certain length of time, and it often comes with a penalty if the employment duration is not complied with.

2. Purpose of employment bond

The common purpose of an employment bond is to retain employees for a certain duration of time, particularly if they have been trained or have undergone professional development.

In some cases, an employment bond is a way for the employer to ensure that they can recover any associated costs in hiring an applicant, such as fees that may have been paid to recruiters or recruitment firms, training and professional development, and similar thereto.

3. Validity of employment bond

An employment bond is a contractual stipulation, whereby the employer and the employee freely stipulated and agreed to the employment terms and conditions, including the employment bond.

This follows the principle of autonomy, whereby parties are free to stipulate on the terms and conditions of their contract provided it is not contrary to law, morals, good customs, or public policy.


⦁ Principles of employment contracts

a. Law

There is currently no labor law nor regulation specifically regulating nor prohibiting employment bond. Thus, following the general principle of law that: what is not prohibited is allowed, employment bond stipulations are allowed as they are not prohibited.

1) On involuntary...


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