Indentured servitude involved a contractual agreement where someone consented to unpaid labor for a creditor. They essentially traded their labor and freedom of movement for a pre-defined duration of time, typically spanning a minimum of seven years but occasionally extending to three decades. These indenture arrangements frequently arose when individuals urgently seeking work encountered employers eager to exploit their vulnerable situation. Criminal enterprises, exemplified by members of the Hutt species, established entire industries based on these practices. However, shipping organizations like the Byne Guild also utilized indentures to boost their profits.
In the High Republic Era, companies collaborating with the Galactic Republic were permitted to employ indentured servants, subject to a limited number of legal restrictions. One such restriction prohibited lenders from demanding that indentured servants endanger their lives. Although not as severe as slavery, this system still confined individuals to years of relentless and uncompensated labor. Affie Hollow's report to the Republic regarding the mistreatment of indentured workers within the Byne Guild ultimately resulted in the guild's disbandment.