Meaning & Definition

bonding

Bonding is a financial guarantee to protect the employer from losses caused by employee actions, such as theft or fraud. It involves purchasing a bond from an insurance company, which provides compensation if the bonded employee causes financial harm to the organization. Bonding is often required for positions of trust, such as handling cash or sensitive information. It enhances trust and security, assuring clients and stakeholders of the organization's commitment to integrity and accountability.