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If the contract is reasonably symmetric, which it generally is not for this kind of scam, there isn't a problem. Example: a company hires someone, expecting at
by samatman 4y ago
If the contract is reasonably symmetric, which it generally is not for this kind of scam, there isn't a problem.
Example: a company hires someone, expecting at least a year of labor, two weeks of training. Training cost is amortized across the year if the employee leaves early, the company is obliged to employ the employee for that full year unless terminated with cause.
The scam is to pretend the training has some absurd value relative to the wage, then hold it over the employee to retain their labor, while reserving the right to lay them off whenever it's convenient. Hey, training is on us, you're welcome!
That such arrangements constitute indentured servitude was decided by the Supreme Court in the 19th century. It's no different from the company store.