Representing Employees In Breach Of Contract Claims
A breach of contract occurs when a party fails to perform in accordance with the terms of an agreement. A breach of contract between an employer and employee typically arises in the context of employment and severance agreements.
If you become involved in one of these conflicts, Fisher | Taubenfeld LLP, can guide you through the legal process and protect your interests. We represent clients in the New York City area, Long Island and New Jersey.
What Do Employees And Employers Owe Each Other?
In an employment contract, both the employer and worker have certain rights and duties. The employer must make sure the workplace is safe and healthy, pay wages on time and give benefits as the contract says. They can expect the worker to do their job well and follow company rules. If problems happen, the boss can take action according to the contract and the law.
The worker has the right to earn fair pay, work in a safe place, and get the benefits promised in the contract. They need to finish their tasks, follow workplace rules and keep things confidential when needed.
Both sides should talk openly and solve problems quickly to keep a good working relationship. Knowing these rights and duties helps both boss and worker understand what to do and how to handle issues during the job.
Types Of Contract Breaches
Two types of breaches of contract to know are:
- Material breach: This is a significant failure to perform the terms of the contract, undermining its purpose. In these situations, the non-breaching party can seek damages and potentially terminate the agreement.
- Minor breach: A minor breach, or partial breach, happens when someone does not do a specific part of what they promised in a contract, but it does not undermine the agreement as a whole. The other person involved can ask for compensation, but they usually have to keep up with their own part of the contract too.
Understanding these distinctions is vital for determining the appropriate legal remedy and course of action when a breach occurs.
What Might Breach Of An Employment Contract Look Like?
Employment agreements are critical in defining the terms of an employer-employee relationship. However, breaches can occur, leading to legal disputes. Here are examples of situations that may involve breach of contract in employment agreements:
- Nonpayment of the agreed salary: An employer’s failure to pay the agreed-upon salary or wages can constitute a breach of contract. This includes not providing bonuses or other compensation stipulated in the agreement.
- Violation of confidentiality clauses: If an employee discloses sensitive company information, they may be breaching the confidentiality clause in their contract, leading to legal repercussions.
- Unlawful termination: Terminating an employee without following the contractual terms or legal requirements can result in a breach. This includes terminating an employee without proper notice or for reasons not stated in the contract.
- Failure to provide agreed benefits: If an employer fails to provide benefits such as health insurance, retirement plans or paid leave as outlined in the employment contract, it can be considered a breach.
- Noncompete violations: An employee may breach a noncompete clause by joining a competitor or starting a similar business within the restricted timeframe or geographical area.
At Fisher | Taubenfeld LLP, our lawyers can review options in each of these breach situations to protect an employee’s rights.
What Could You Recover After Breach Of Contract?
Both employers and employees should understand the remedies available if someone breaches the contract. Sometimes, the court might order specific performance, meaning the breaching party must do what the contract says. For example, the court might require an employer who fired a worker without following the terms of the contract to pay lost wages and benefits to make up for the employee’s losses.
Other times, the court might cancel the contract, freeing both parties from their obligations. For example, if the contract contains illegal terms like requiring the employee to engage in unlawful activities, the court could deem the contract void. This would mean that the employer could not enforce the terms of that contract.
How Can You Resolve Breach Of Contract?
Facing a breach of an employment contract can be daunting, but knowing the steps to resolve it can ease the process. Some steps to take include:
- Negotiation: The first step in resolving a breach is when both parties come together to discuss the issue. Identify the problem and try to find a solution that satisfies both sides.
- Mediation: In mediation, a neutral third party helps guide both parties toward a resolution. The mediator doesn’t make decisions but assists in finding a mutually agreeable solution.
- Litigation: When negotiation and mediation fail, you may need to take the dispute to court to decide the outcome. Before choosing litigation, consider the potential impact on your professional relationship and weigh the costs and benefits carefully with the help of an attorney.
By following these steps and seeking the best resolution method, you can handle breaches effectively and protect your career and rights.
Facing A Breach Of Contract Dispute? Contact Fisher | Taubenfeld LLP.
Our knowledgeable team is ready to help you resolve breach of contract issues in New York or New Jersey. Send our office email or call 646-741-3490, to discuss your employment law issue with an experienced New York employment contracts attorney. Consultations with our team are free and confidential.