When Does an Employer Breach an Employment Contract?

An employment contract is a legally binding agreement between an employer and an employee that outlines the terms of employment, including job duties, compensation, benefits, and severance arrangements. When either party fails to uphold their obligations under the contract, it can result in a breach of contract. For employees, this can mean a range of potential issues, from failure to pay agreed wages to wrongful termination. If you feel that your employment contract has been violated, it’s crucial to understand when a breach has occurred and what steps you can take to protect your rights.

What is a Breach of Employment Contract?

A breach of an employment contract occurs when an employer fails to fulfill their legal obligations as outlined in the agreement. These obligations can include providing agreed-upon pay, benefits, job responsibilities, and working conditions. When an employer neglects or fails to meet contract terms, it can create serious challenges for employees, both professionally and personally.

Common Examples of Employment Contract Breaches

There are several ways in which an employer can breach an employment contract. Some of the most common scenarios include:

1. Failure to Pay Wages or Benefits: One of the most straightforward breaches is an employer’s failure to pay the agreed salary, commissions, or benefits (such as health insurance or retirement contributions). If the employer is not meeting these basic terms, this is a clear contract violation.
2. Changing Job Duties Without Consent: If your employer changes the terms of your employment by significantly altering your job duties without your agreement, it can constitute a breach of the contract. For example, if the contract states specific responsibilities or a particular role, but your employer assigns tasks outside of those duties, they may be violating the terms.
3. Termination Without Proper Cause: If your employment contract specifies certain grounds for termination—such as only being able to be fired for performance-related reasons, a hostile work environment, or other conditions—and the employer terminates you for reasons outside of these terms, this could be a breach of contract. Similarly, if your employer fails to provide a required severance package or notice, this also constitutes a breach.
4. Failure to Provide Severance: Employment contracts often outline terms of severance or other financial support in the event of termination. If your employer does not honor these terms upon your termination, you may be entitled to legal recourse for breaching the contract.
5. Creating a Hostile Work Environment: While not always directly outlined in contracts, some employment agreements may contain clauses about maintaining a safe and respectful work environment. If your employer fails to take action to prevent workplace harassment or allows a hostile work environment to persist, this could also lead to a breach, especially if the contract includes specific clauses about workplace behavior.

How Do I Know My Contract Was Breached?

Identifying a breach of contract involves determining if your employer has failed to uphold any of the agreed-upon terms. This could be as clear as not paying you for the work you’ve done or as subtle as changing your job responsibilities without consent.

Here are some signs that your employment contract may have been breached:

• Failure to pay wages on time or in the agreed amount.
• Changes to your job duties that deviate significantly from the agreed-upon responsibilities.
• Unilateral termination without following the outlined termination procedures in the contract.
• Refusal to provide severance or benefits as per the contract.
• Workplace conditions that do not align with the expectations outlined in the agreement.

If you notice any of these issues, it’s important to document everything and gather evidence to support your claim.

What Should I Do if My Contract Was Breached?

If you believe your employment contract has been breached, here are some steps to take:

1. Review the Contract: Carefully review the terms of your contract to confirm that a breach has occurred. Pay particular attention to sections related to job duties, pay, benefits, and termination.
2. Talk to Your Employer: Before taking legal action, you might want to discuss the issue with your employer. It’s possible that there’s been a misunderstanding, and your employer may be willing to correct the situation.
3. Consult an Employees’ Rights Lawyer: If the issue is not resolved or if you believe the breach is significant, it’s time to consult an employees’ rights lawyer. A New York employment contracts lawyer can help you assess your situation, determine whether a breach has occurred, and explain your legal options.
4. Consider Legal Action: Depending on the severity of the breach, you may have the right to file a lawsuit for breach of contract. Legal recourse may involve seeking damages, such as compensation for lost wages, emotional distress, or other financial losses.
5. File a Complaint: In some cases, if the breach involves issues like workplace harassment or hostile work environments, you may also file a complaint with regulatory bodies like the Equal Employment Opportunity Commission (EEOC) or New York State Division of Human Rights (NYSDHR).

Protect Your Rights

A breach of an employment contract can have serious consequences for employees, especially if it leads to wrongful termination, hostile work environments, or a loss of benefits and compensation. If you believe your employer has violated the terms of your agreement, it’s important to understand your rights and take appropriate action. Consulting with a qualified New York employment contracts lawyer will help you assess your situation and determine whether you should pursue legal action. Don’t hesitate to protect your rights—especially when it comes to honoring your contract.

Call Us

We at Filippatos PLLC stand in proud solidarity with all employees. If you are experiencing discrimination, harassment or retaliation in the workplace, please give us a call at 888-9-JOBLAW for a free consultation. We will do our utmost to help secure you the justice you deserve.