Employment Contract – Breach and Compensation
An employment contract is an agreement of terms and conditions between the employer and the employee. The employment contract need not be in writing. It can be a notice on the notice board or your appointment letter. However you are entitled for a written contract within two months of commencement of your work.
Terms of contract
These are conditions and terms which explain what an employer expects from an employee and what an employee’s rights and job description is all about. The contract will also talk about the legally binding elements of the contract.
The contract will also contain implied terms that are not outwardly printed, but are to be understood by the employee and the employer. Certain are assumed, such as the agreement for paid sick leave. Terms that are included in the contract for customs are to be followed without any change and cannot be changed without the employees consent.
Changes in the employment contract
Changes can be brought in an agreement for various reasons. It could be a need for the employer to change the rules regarding working time and rates. Or it could be to correct mistakes. It could also be for some disciplinary action. An employee can request for changes too. It can be for more pay or more holidays, etc. But he change can be made only if the change is covered by statutory rights.
Breach of contract
The terms of the contract are legally binding. But if any of the parties are involved in breaking any of the clauses, litigation can be carried out on the same. The breach of contract by an employer is claimable for compensation. The problem can be solved by mediation by a neutral third party who will listen to the arguments by both sides and gives a verdict.
If that does not seem to work for either of the party, then a report can be filed with the employment tribunal. You can appoint a legal adviser from an expert law firm to give you advice on whether or not the case can stand a chance.
Another way to go about taking legal actions is to file a case in the civil court. This can be done while the employee is still employed at the company.
In case of breach of contract by an employee, the employer can blame a heavy financial loss on the employee’s shoulders. The best way to go about it would be to deal with the concerned employee in an informally. The employer could go to a civil court and claim for a compensation that includes damages sustained by the company by appointing you, financial losses for the replacement workers to do your work and/or loss of revenue. Most common breach by an employee is resigning without giving proper notice to the employer
Read the terms and conditions properly and go over it with your lawyer to make sure you understand and comprehend what you are signing on.
