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Breach of Employment Contract
An employment contract sets out the terms and conditions that govern the working relationship between an employer and employee and defines the responsibilities of both parties. These terms are often set out in a written employment contract, but they can also be agreed upon orally and can be either expressly agreed upon by the employer and employee or implied in the employment contract.
An employment contract is a legally binding document and is a two-way agreement, so if either an employer or employee does not abide by the terms of the agreement, they could be in breach of contract, which could result in legal proceedings.
Types of Breaches
If one party does not abide by the terms of the employment contract, they could be in breach of contract. Employee breaches of contract can range from minor issues to serious breaches. The response to a minor breach may be an informal discussion, but a serious breach could require the business to instigate formal disciplinary proceedings, which could result in the dismissal of the employee.
An employer can also breach an implied term of the employment contract. A common employee claim is that their employer has breached the term of mutual trust and confidence implied into every employment contract. If there is such a breach, an employee could resign and claim constructive unfair dismissal.
Breaches of the employment contract can also take place after the employee’s employment with your business has ended. For example, if a former employee goes to work for a competitor in breach of the post-termination restrictions in their employment contract, they could be in breach of their employment contract.
The Importance of Avoiding Breach of Contract
As an employer, it is in your interest to avoid breaching the terms of any employment contracts that the business has with its employees and to know how to respond if an employee is in breach of their contract. Under section 1 of the Employment Rights Act 1996, it is a requirement for all employees to have the main terms of their employment set out in writing. While this does not have to be a formal employment contract, it can be beneficial to have a detailed contract that sets out the terms of employment, as this can help define the obligations of your business and its employees.
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