{"id":81722,"date":"2022-03-15T15:32:32","date_gmt":"2022-03-15T07:32:32","guid":{"rendered":"https:\/\/zegal.com\/employee-bond-agreement\/"},"modified":"2024-08-20T15:18:52","modified_gmt":"2024-08-20T07:18:52","slug":"employee-bond-agreement","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/","title":{"rendered":"Employee Bond Agreement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/#What_is_an_Employment_Bond_Agreement\" >What is an Employment Bond Agreement?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/#Different_types_of_Employment_Bond_Agreements\" >Different types of Employment Bond Agreements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/#Who_needs_an_Employment_Bond_Agreement\" >Who needs an Employment Bond Agreement?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/#What_to_include_in_an_Employee_Bond_Agreement\" >What to include in an Employee Bond Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-employment-bond-agreement\"><span class=\"ez-toc-section\" id=\"What_is_an_Employment_Bond_Agreement\"><\/span>What is an Employment Bond Agreement?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An employment bond agreement is a legal contract establishing a fidelity bond between two parties; typically a company and its employee. Essentially, the terms of employment are set out, subsequently creating a form of insurance for the company against the possibility of its employee potentially part-taking in dishonest or <a href=\"https:\/\/www.lawinsider.com\/dictionary\/dishonest-or-fraudulent-act\">fraudulent acts<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-different-types-of-employment-bond-agreements\"><span class=\"ez-toc-section\" id=\"Different_types_of_Employment_Bond_Agreements\"><\/span>Different types of Employment Bond Agreements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Employment Bond Agreements are signed for a number of various purposes. Most commonly, it is used in order to outline restrictions on employees for joining a company. However, it may also be used to set restrictions on what the employee can do after their term of employment with the company ends. Finally, the agreement may also stipulate monetary penalties applicable to the employee should they leave before the term of their contract is complete.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-needs-an-employment-bond-agreement\"><span class=\"ez-toc-section\" id=\"Who_needs_an_Employment_Bond_Agreement\"><\/span>Who needs an Employment Bond Agreement?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This fidelity bond acts as a form of insurance, protecting the company against any type of losses it may suffer as a result of an employee&#8217;s dishonest or fraudulent behaviour. This may be particularly useful for companies who provide potentially high risk information or valuable company assets and finances to their employees. This agreement may also include a non-compete clause to prevent the employee from engaging in direct competition after they leave the company.<\/p>\n\n\n\n<p>When enforcing employment bond agreements, it is important to note the three key players that govern this relationship between the company and its employee. Firstly, the principal is the individual who purchases the bond agreement and risks violating its terms. The party being protected from such violations of contract is called the obligee and the surety is the company issuing the bond. The surety is also the party responsible for paying the initial value of the claim being violated. Ultimately, however, the surety would be able to pursue a claim agains the employee for the sum of money to replace training and other relevant expenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-to-include-in-an-employee-bond-agreement\"><span class=\"ez-toc-section\" id=\"What_to_include_in_an_Employee_Bond_Agreement\"><\/span>What to include in an Employee Bond Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While the contents of an employee bond agreement vary greatly between companies depending on its purpose, most agreements will include the time period for which an employee is bound by the agreement, the date on which remuneration is issued to employees, allowances for other amenities such as technology and transport, the company&#8217;s attendance policy and so on.&nbsp;<\/p>\n\n\n\n<p>It is also important to note that the time period for which an employee has to remain with the employer should be reasonably dictated by the company. The employer cannot stipulate within a contract an unreasonable length of employment period and this would differ from one company to another.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Essentially, an employment bond agreement creates a fidelity bond between the employer and employee. It acts as insurance or protection for the employer against potentially fraudulent behaviour during and even after the employee&#8217;s contract with the company has concluded.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-you-might-also-like\"><strong>You Might Also Like<\/strong><\/h4>\n\n\n\n<p>Along with this document, make sure you see these other templates in our library:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/zegal.com\/en-nz\/employment-contract\/\">Employment Contract<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/zegal.com\/statement-of-terms-of-employment\/\">Statement of Terms of Employment<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/zegal.com\/en-nz\/employee-privacy-notice\/\">Employee Privacy Notice<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/zegal.com\/employee-share-option-plan\/\">Employee Share Option Plan<\/a><\/li>\n<\/ul>\n\n\n","protected":false},"excerpt":{"rendered":"<p>What is an Employment Bond Agreement?&nbsp; An employment bond agreement is a legal contract establishing a fidelity bond between two parties; typically a company and its employee. Essentially, the terms of employment are set out, subsequently creating a form of insurance for the company against the possibility of its employee potentially part-taking in dishonest or [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[13557],"meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":2,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-81722","page","type-page","status-publish","hentry","template-for-employees"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Employee Bond Agreement | Zegal New Zealand<\/title>\n<meta name=\"description\" content=\"An employment bond agreement is a legal contract establishing a fidelity bond between two parties; typically a company and its employee.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-nz\/wp-json\/wp\/v2\/pages\/81722\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employee Bond Agreement\" \/>\n<meta property=\"og:description\" content=\"An employment bond agreement is a legal contract establishing a fidelity bond between two parties; typically a company and its employee.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zegal.com\/en-nz\/employee-bond-agreement\/\" \/>\n<meta property=\"og:site_name\" content=\"Zegal New Zealand\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/getzegal\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-20T07:18:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zegal.com\/wp-content\/uploads\/2023\/09\/zegal-logo-red.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@getzegal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/employee-bond-agreement\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/employee-bond-agreement\\\/\",\"name\":\"Employee Bond Agreement | Zegal New Zealand\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/#website\"},\"datePublished\":\"2022-03-15T07:32:32+00:00\",\"dateModified\":\"2024-08-20T07:18:52+00:00\",\"description\":\"An employment bond agreement is a legal contract establishing a fidelity bond between two parties; typically a company and its employee.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/employee-bond-agreement\\\/#breadcrumb\"},\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/zegal.com\\\/en-nz\\\/employee-bond-agreement\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/employee-bond-agreement\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Legal Templates\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/all-docs\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"For Employees\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/template\\\/for-employees\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Employee Bond Agreement\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/#website\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/\",\"name\":\"Zegal New Zealand\",\"description\":\"Need legal? 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