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Such employment bonds are agreements between the employer and employee wherein among other terms & conditions of the employment, an additional clause is incorporated which requires the employee to serve the employer compulsorily for a specific time period else refund the amount specified as bond value.
I n 1966 the U.S. Department of Labor established The Federal Bonding Program to provide Fidelity Bonds that guarantee honesty for âat-riskâ, hard-to-place job seekers.The bonds cover the first six months of employment. There is no cost to the job applicant or the employer.In most states the bonds are made available through the state agency responsible for workforce matters.The Federal Bonding Program is a partnership between the U. S. Department of Labor and The McLaughlin Company, an insurance brokerage firm, as agent for Travelers Casualty and Surety Company of America.he bonds cover the first six months of employment. There is no cost to the job applicant or the employer. In most states the bonds are made available through the state agency responsible for workforce matters.