Bonded labour, also known as debt bondage, occurs when people agree to unpaid labour as a security or amortisation against a loan or debt they either assumed themselves or on behalf of someone else. In theory, it is presented as an employment agreement, however, based on unpaid work to repay a debt, which oftentimes is not achievable and with work being under dangerous or extreme conditions.

The difficulty of settling the debts and the potential incurrence of additional debts often lead to a perpetuation of the exploitative situation.

Source: End Slavery Now

The Kafala system’s illegal and unethical recruitment practices include agencies in sending countries recruiting Migrant Domestic Workers with the requirement of upfront recruitment fees, which leads to many MDWs taking up loans with the agencies themselves, pushing them into the trap of debt bondage. 

In some cases the MDWs covered the expenses of their legal/travel documents, flights and administrative fees, unaware that their employers themselves cover some of these fees.