A breach of employment contract occurs when one party fails to comply with the provisions of the agreement. Both employers and employees can be at fault, and legal action may be taken to seek compensation. Settlement terms are often negotiated instead of going to court.
Also called a breach of employment contract, a breach of employment contract is a situation in which an employer or employee has failed to comply with the provisions contained in the employment contract governing the relationship between the two parties. In many nations, this applies to both the implied and express provisions of the contract, making it necessary for both parties to comply with the terms of the agreement as well as any governmental regulations applicable to employment in that country. If one party fails to comply with the terms of the contract, the other party has the right to terminate the contract and may have the legal capacity to seek compensation in some form.
As in other situations involving breach of contracts, a breach of contract of employment typically occurs because one or both parties have failed to honor covenants made in the contract. An employee may fail to comply with the confidentiality clause of the agreement and disclose proprietary information to a competitor, or possibly fail to perform the assigned duties required by the contractual conditions. An employer may fail to provide benefits or other incentives to the employee within the specified time period or create a hostile work environment that makes it extremely difficult to complete tasks. Since both parties hold the other responsible for fulfilling the terms of the contract, each party has the right to legally terminate the relationship if the other party refuses to comply with the provisions of the employment contract.
A breach of employment contract can occur in almost any employment situation. Both union and non-union employees can be involved in a breach of contract. Similarly, a breach of contract of employment can occur in an at-will labor jurisdiction as well as in the right to work jurisdiction. Employers of all types are responsible for complying with all government standards that apply to the treatment of employees, even if there is no specific employment contract between the two parties.
In the event that an employer or employee chooses not to honor the terms of the employment contract, the offended party has the right to take actions which could be upheld in court. For example, if the employer fails to provide the promised sign up bonus or fails to provide the incentives specifically stipulated in the contract, the employee can sue for those benefits. Likewise, if the worker fails to fulfill the duties stipulated in the contract, the employer has the right to terminate the relationship. If the employee shares confidential information about product lines or development, or some other type of proprietary knowledge, the employer may have cause to sue for damages. It’s not unusual for both parties to negotiate some kind of settlement terms when an employment contract breach occurs, rather than face what could be a lengthy process in the justice system.
Protect your devices with Threat Protection by NordVPN
