Breaching an Employment Contract - Damages and Recovery

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Most Common Employment Law Issues:

What Is an Employment Contract?

A contract is a legally binding agreement between parties. In the instance of employment, this contract would be between the employer and the employee. The employee is offering her time and labor to the employer and in exchange, the employer is offering the employee monetary compensation. A written contract that is signed by both parties is the most common type of an employment contract.

How Are Damages Calculated in Employment Contracts?

The legal remedy for breaching an employment contract is usually expectation damages. For example, if the employer wrongfully terminated an employee, then the employee may be entitled to compensation in the form of lost wages. The employee expected to earn a certain amount prior to termination, therefore she may sue her employer for expectation damages.

If the employee breached the contract, then the employer may also be entitled to compensation. For example, if the contract stated that an employee must give 30 days notice, but the employee only gave a two week notice, the employer could sue for damages. Typically, damages of this sort are calculated by the cost of finding an employee replacement. If the replacement is hired quickly and for the same salary, then damages will be minimal.

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Are There Limits to My Recovery?

There are a few limitations that can lessen damages received, or even dismiss a case based on a breached contract:

Do I Need a Lawyer?

Employment contracts can include multiple clauses and conditions which can cause a great deal of confusion. Consulting an employment lawyer who will review your case may give you a clear outline of where your case stands.

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Last Modified: 06-27-2017 02:11 AM PDT

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