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Steps Employees Need to Take if Their Employers Breach Contract

Moneymagpie Team 11th Aug 2022 No Comments

Reading Time: 2 minutes

In every relationship, there has to be some level of trust between the parties, and it’s no different when it comes to work relationships. Contracts exist so that everyone knows exactly what their duties and their rights are, whether they are the employer or the employee.  

Not abiding by this contract won’t just affect the employer/employee relationship, but it’s also a serious issue. While it’s often employees who breach contract, employers can breach contract as well. And if an employer has breached their contract, there are a few steps that the employee can take.  

Take legal action

Depending on what the breach was, employees may be able to take legal action against their employer, which could lead to the employee getting some kind of compensation, whether financial or otherwise.  

There are many ways that employers can breach a contract, including firing an employee without good reason, not paying them what they should, or refusing to give them time off. If the company breached the agreed contract, you can even sue your employer. 

Because the breach of a contract is such a sensitive subject, you should get a professional to help you if you decide to take legal action.  

Gather evidence

If there’s no solid evidence that your employer breached the contract, they may simply deny it, and it would become a case of your word against theirs. As you can imagine, these types of cases are harder to win.  

So, as soon as you take legal action – or even before – you should try to get evidence of the breach of contract. You can ask others who witnessed the breach to testify on your behalf, or you can use written evidence if the breach took place over email or text. If you’ve ever wondered whether you should archive or delete your emails, now you know – it might be best to hang onto things, because you never know when you may need them.  

Look for another job

Look, you may be able to stay on at your current company if you want, but you need to ask yourself whether it’s worth it. 

After all, if you are working for someone who clearly doesn’t value the importance of a contract and has betrayed you once, who’s to say they won’t do it again? Your working relationship with your employer will be damaged by the contract breach, so you may find it better to look for a new job. 

Sort out your finances

Unfortunately, even though your employer would be the one in the wrong if they breach the contract, the odds are that you will still be negatively affected in many ways, including your finances.  

If you quit your job, you may be unemployed for a while. And of course, if you do decide to pursue a legal course of action, you would likely need to pay quite a large amount in legal fees. Consider using your savings or looking at ways to grow your money so that you can get back on your feet sooner rather than later.  

Disclaimer: MoneyMagpie is not a licensed financial or legal advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial or legal advice. Anyone thinking of investing should conduct their own due diligence. 

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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