Education Entrepreneurship

Are employment bonds really needed?

Does a company, be it a start-up or not, need to make their employee sign bonds that state that the employee has to serve the company for at least for a period of X years or will be penalized $Y? I find them to be neither ethical nor legal or even enforceable in a country like India. At INSORCE we have replaced the stick with a carrot and it is working great for us.