Generally, employers incur huge expenditure in providing training to their employees, which is aimed at improving their professional skills to help the company provide better quality service to their clients. However, some employees leave the company after the extensive training program for better salaries and perks after having improved their knowledge acquired through these expensive training sessions.
High attrition rates can affect companies in numerous ways. They have to go through the strenuous and time-consuming process of searching new and competent candidates again. Loss of trained staff can have financial implications, due to delays in crucial ongoing projects. This can affect the reputation of the company adversely.
To prevent such losses, some employers require new recruits to sign a bond. The employment bond is basically an agreement entered into by the company with the employee. The crux of the bond is that in consideration of the training given to the employee and the money spent on him, the employee shall remain in the services of the company for a specific time period. Non-compliance would make the employee liable to pay certain sum of money that equals the expenses and other allied costs incurred by the company in providing training.
The moot question here is whether employment bonds are legal in the US?
According to experts, there is nothing called employment bond. However, there are contracts that could demand the employee to meet specific terms and conditions. It is a mutual agreement to keep employers protected from the expenses they have incurred on employees.
Such agreements may be valid and legally enforceable, if the parties agree to sign them without force, coercion, or misrepresentation. However, US courts generally do not restrain employees from joining other companies unless the conditions of the agreement fully justify and prove breach of vital clauses. Exorbitant compensations are unheard of. At the most, both parties may be asked to negotiate to find a common ground that’s acceptable to both.