Breaching an Employment Contract

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Most Common Employment Law Issues:

What Is an Employment Contract?

An employment contract sets out the terms and obligations of both the employer and employee, such as an agreed salary and a non-solicit clause. If one of these parties breaches the contract, the other party can sue for damages. Damages refer to a sum of money used to compensate a party for the loss suffered as a result of the breach of contract.   

How Are Damages Computed in Employment Contracts?

The damages awarded for breaching an employment contract typically are referred to as expectation damages. Expectation damages are awarded to compensate for the loss of the bargain. The loss of the bargain refers to the profit that the injured party would have realized if the contract had been performed. How expectation damages are computed depends on who is suing for breach of contract:    

Are There Other Types of Recoverable Damages?

Even if expectation damages aren't recoverable, the party who suffered a loss can still recover other types of damages. Some of the more typical ones include:

Are There Any Limitations to My Recovery of Damages?

Several limitations apply to recovery of damages for an employment contract: 

Do I Need a Lawyer for My Breach of Employee Contract Claim?

If you think you are entitled to damages, an experienced employment attorney can help you recover damages. If you are being sued for damages, an employment lawyer can help you mount an effective defense.

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Last Modified: 04-18-2017 08:25 PM PDT

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