Breach of Contract

Most employment relationships are at-will, which means that either the employer or the employee can terminate it at any time, with or without good cause. However, employers sometimes enter into contracts with their employees. Every employee has a contract with his or her employer to work in exchange for wages or compensation. If your employer does not pay you, you may be able to sue for breach of this contract. You may also have other contracts with your employer.

You may have a written contract with your employer. If it provides for a fixed term of employment, then your employer cannot fire you without a good reason. Your contract may contain other terms of employment as well—for example, compensation, severance package, or job duties. If your employer violates one of these terms, you may have a claim for breach of contract.

If you belong to a union, you may be protected by your union’s written contract with your employer. Most union contracts say that employers cannot fire their employees without just cause—for example, violating company rules. If your employer fires you without just cause, you may have a claim for breach of your union agreement.

Your employee handbook or manual may create a contract between you and your employer. You should read your employee manual carefully. It may however contain a disclaimer stating that it is not intended to be a contract. Other writings from your employer may also be considered contracts, although this will depend on the facts and circumstances of your situation.

You and your employer may also make a verbal contract regarding the terms of your employment. These contracts are often difficult to prove, but evidence of emails, letters, phone calls, or other communications that verify the terms of the contract are helpful.

Your employer’s conduct, policies, statements, and practices may also create an implied contract. These types of contracts normally are created by the long-term practices of your employer.

Finally, you may be able to enforce a promise made to you by your employer, even if it does not create an actual contract. You will only have a claim if you did something in response to your employer’s promise, and suffered some harm as a result. Also, it must have been reasonable for you to do what you did in response to your employer’s promise.

Nichols Kaster & Anderson, PLLP has litigation experience in many types of cases, including breach of contract. If you think you may become involved in litigation with your employer, feel free to contact us.