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What to Do When Your Employer Breaches Your Contract

Businessman breaking contract at office.
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Employment contracts are foundational to the relationship between employers and employees, establishing clear terms and expectations for both parties. However, there are instances where employers may breach these contracts, leaving employees uncertain about their rights and next steps.

Knowing what to do when your employer breaches your contract is essential to protecting your interests and ensuring a fair resolution.

Understanding Contract Breaches

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the agreement. Common examples of employer breaches include:

  • Non-payment of wages or benefits: Failing to pay the agreed salary, bonuses, or benefits.
  • Changes in job responsibilities: Altering the employee's role or duties without consent.
  • Unlawful termination: Terminating the employee without following the contract's stipulated process.
  • Failure to provide agreed working conditions: Not maintaining the promised work environment or hours.

Steps to Take When Your Employer Breaches Your Contract

  1. Review Your Contract Thoroughly

    The first step is to carefully review your employment contract. Understand the specific terms and conditions that have been breached. Identify any clauses related to dispute resolution, which might outline the steps you need to take to address the breach.

  2. Document the Breach

    Keep detailed records of the breach. This includes saving emails, memos, and any other correspondence that supports your claim. Document instances where the employer failed to meet their obligations, such as missed payments or changes in job duties.

  3. Communicate with Your Employer

    In many cases, the breach may be due to a misunderstanding or oversight. Schedule a meeting with your employer to discuss the issue. Clearly explain how they have breached the contract and provide evidence to support your claim. Sometimes, open communication can lead to a resolution without further action.

  4. Seek Legal Advice

    If the issue is not resolved through direct communication, it may be time to seek legal advice. Consult with an employment lawyer who can review your case and provide guidance on the best course of action. They can help you understand your rights and the potential remedies available.

  5. Consider Mediation or Arbitration

    Many employment contracts include clauses for mediation or arbitration to resolve disputes. These processes are often quicker and less formal than going to court. Mediation involves a neutral third party helping both sides reach a mutually agreeable solution, while arbitration involves a third party making a binding decision on the dispute.

  6. File a Legal Claim

    If mediation or arbitration is not an option or fails to resolve the issue, you may need to file a legal claim. Your lawyer can assist you in preparing and filing a lawsuit against your employer for breach of contract. This process can be lengthy and complex, but it may be necessary to obtain the compensation or remedies you deserve.

  7. Understand Potential Remedies

    Remedies for breach of contract can vary, but they generally include:

    • Compensatory damages: Financial compensation for losses incurred due to the breach.
    • Specific performance: A court order requiring the employer to fulfill their contractual obligations.
    • Rescission: Termination of the contract, with both parties released from their obligations.

Protect Your Rights! Call Us Today!

Facing a breach of contract by your employer can be daunting, but understanding your rights and the steps to take can empower you to address the issue effectively. Reach out to Rod Smith Law PLLC today at (304) 406-7076 to learn more.

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