What You Need to Know about a Breach of Employment Contract in California
Before commencing their employment, future employees may sign a contract with their employer, references liability, and employee benefits. Here’s everything you need to know about breaches of employment contracts in California.
Employment contracts are legally binding in California. Parties can create employment contracts in writing, through verbal agreement, or due to implied circumstances. A breach of an employment contract occurs when the employee or employer has not performed or performed against the contract’s terms.
Breaches of Employment Contract Examples
Although each contract is specific to the employee and employer, common examples of breaching an employment contract include:
- An employer or employee did not uphold the verbal agreement or written contract terms.
- An employer fires an employee or terminates their position without a justified cause.
- An employer does not provide the employee with the correct statutory or contractual notice period before laying them off,
- An employee forcibly resigns because of a fundamental breach of contract.
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Employment Contract Breachers in California
A major contract breach is when a party completely fails to perform any condition within the underlying employment contract without a justifiable reason. A major breach is when the contract is non-salvageable because one party cannot or is unwilling to continue adhering to the contract following a breach.
A minor breach of contract is less serious and does not give the non-breaching party the right to consider why the contract has been ended. In a minor breach case, the court may condone the breach or a party can seek reparations for or forgiven by the affected party.
Terminating an Employee Contract
An employee, employer, or the court may terminate an employment contract due to:
- Removal of the subject matter of employment,
- Death or legal incapacity of the employee,
- Expiration of the employment contract’s appointed term.
If the employment contract does not have a specific termination date, either party may terminate the contract if they give sufficient notice to the other party. Although the employment contract may have a specified term, employers can terminate the agreement at any time when employees commit a willful breach of a duty within the course of employment, employees perform habitual neglect, or employees continuously refuse to perform employment duties.
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Alternatively, employers may perform a permanent or willful breach of their obligations to employees. California defines a willful breach of duty as an intentional act against the terms of the employment contract. However, habitual neglect of duty includes an unintentional act or negligent failure occurring once or repeatedly by the breacher.
Damages for Breach of an Employment Contract in California
California Contract Law provides reparations for damages inflicted on the aggrieved party resulting from a breach of an employment contract. One should note that one cannot receive damages when the nature and origins of the damages are not discoverable nor traced to the breach of contract.
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If you or a loved one would like to learn more about Breach of Employment Contract California, get your free consultation with one of our Employment Attorneys in California today!