Breach of Employment Contract: What Employees Should Know

Employment contracts serve as the foundation of the relationship between employers and employees. They offer clarity and protection for both parties. However, when an employer fails to uphold their end of the agreement, it can lead to a breach of the employment contract. 

As an employee, you must understand your rights and options in the event of a breach. Here's what you should know about breach of employment contracts. 

Types of Employment Contracts

Employment contracts come in various forms, including written, oral, and implied contracts. 

• Written contracts are explicit agreements that outline terms and conditions of employment, such as salary, benefits, job duties, and termination procedures. 
• Oral contracts, while less common, can still be legally binding if certain criteria are met.
• Implied contracts arise when an employer's actions or statements imply an agreement to certain terms, even if not explicitly stated in writing.

Understanding Breach of Contract

A breach of employment contract occurs when an employer fails to fulfill their obligations as outlined in the contract. This can include failure to pay wages or benefits, wrongful termination, changes to job duties or conditions without consent, or failure to provide promised opportunities or benefits. It's important to review the terms of your employment contract to understand your rights and obligations.

Material vs. Minor Breaches

Breaches of employment contracts can be classified as material or minor, depending on the severity of the violation and its impact on the employee. A material breach occurs when the employer's actions significantly undermine the fundamental purpose of the contract, such as non-payment of wages or termination without cause. A minor breach, on the other hand, involves less serious violations that do not substantially impair the contract's purpose.

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Legal Remedies for Breach

If your employer breaches your employment contract, you may be entitled to seek legal remedies to enforce the terms of the contract and recover damages for any losses suffered as a result of the breach. 

Common legal remedies for breach of employment contracts include monetary damages, specific performance (requiring the employer to fulfill their contractual obligations), and injunctive relief (preventing the employer from taking certain actions).

Mitigation of Damages

As an employee, you have a duty to mitigate damages by taking reasonable steps to minimize the harm caused by the breach. This may include seeking alternative employment or mitigating financial losses through other means. Failure to mitigate damages could limit the amount of damages recoverable in a legal action.

Read more: Harassment Prevention: A Guide for Employers

Documenting the Breach

If you believe your employer has breached your employment contract, it's essential to document the breach and gather evidence to support your claim. 

This may include copies of the employment contract, correspondence with the employer, records of work performed, and any other relevant documentation. Keeping thorough records can strengthen your case in the event of legal action.

Seek Legal Advice

If you believe your employer has breached your employment contract, it's advisable to seek legal advice from an experienced employment attorney. An attorney can review the terms of your contract, assess the circumstances of the breach, and advise you on your legal rights and options for recourse. They can also represent you in negotiations with your employer or in legal proceedings if necessary.

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