When you start working, you would usually enter into a contract with your employer. This employment contract sets out specific obligations and rights for both parties involved.
Keep in mind that these agreements are lawfully binding on both parties and a breach in the contract may result in legal action. Your agreement may be in writing or verbally discussed. However, it is always advisable to have employment contracts in hard copy so you have definite proof or evidence that a breach of contract was committed by the other party.
What Does It Mean To Breach Of Contract?
This happens when one or both parties have failed to honor the terms and conditions stated in the contract.
Depending on how serious the offense is, the innocent party may file a case. They may even ask for compensation for financial losses and damages caused by the breach, and may also terminate the contract as soon as possible.
What to do if the contract is breached
If you are an employee, there are certain instances that will count towards a breach of contract such as the following:
- Dismissal without notice. Most companies must give notice of termination at least a month before the termination date.
- If your fixed-term contract was terminated before the term ends and your employer fails to give you a reasonable notice
- If you are dismissed due to misconduct but there is no basis for such accusations
- Forcible resignation due to harassment or discrimination in the office. This is especially applicable to cases where it is the employers or boss themselves that are harassing you.
Such cases result in compensation for damages caused by the wrongful dismissal made by employers. You may also bring the case to common law court and the territory industrial relations commission. Before filing claims, make sure you know these things first:
- The source of your right. This can be in the form of your employment contract, local law, or industry regulations.
- Your employer’s business structure
- Your salary
- How much compensation you are seeking
If you are an employer, there will be times when one of your team members breaches their contract. You may also file for compensation for losses and damages. One of the most common reasons for employers to be filing cases against their employees are the following:
- Divulging confidential information about the employer
- Breaking a valid trade clause within the contract
You may also file a restraining order against the employee for further causing damages against the company and the employer himself.
Why Contracts Are Needed
Employment contracts are important because it details out what the employer expects of the employee and vice versa. It also protects both parties from negligence and abuse.
Contracts have been put in place not just at work but also between businesses and clients, companies that plan to collaborate, and such. Having a contract means that your agreement is legally binding and you could be sued if you don’t hold up your end of the employment contract.
There is also a sense of security and trust that is gained when a contract is put in place. Both parties are obligated to follow what it entails, and both can easily go to court when one or more parts of the contract have been breached.
Know what is well within your rights and obligations and contact an employment lawyer Brisbane. Seeking the advice of a professional will be a wise decision on your end, whether you are an employee or employer. They will be able to guide you through the necessary steps.