Breach of contract of employment
Employment relationships are governed by contracts that outline the rights and obligations of both employers and employees – these are commonly known as a “contract of employment”.
When either party fails to adhere to the terms of the contract of employment, this may constitute a breach of contract. Understanding the nuances of such breaches is crucial for protecting your professional interests.
Read our guide on breaches of employment contracts below
What Is an Employment Contract?
An employment contract is a legally binding agreement between an employer and an employee that specifies the terms and conditions of employment. This contract can be written, verbal, or implied through actions and company policies. Key components typically include:
- Job Title and Responsibilities: A description of the role and duties expected.
- Salary and Benefits: Details of remuneration, bonuses, and other perks.
- Working Hours: The number of hours and days the employee is expected to work.
- Holiday Entitlement: Information on annual leave and public holidays.
- Notice Periods: The required time for termination by either party.
It’s important to note that even in the absence of a written contract, employees are entitled to a “written statement of particulars” outlining the main terms of employment from the first working day.
You can read more about different types of contracts using these guides:
What Types of Breach of Contract Can Your Employer Cause?
Breaches of an employment contract by an employer can be categorized into two main types:
Minor Breaches of Contract
Also known as ‘non-material’ breaches, these are less severe violations that do not fundamentally undermine the employment relationship. Examples include:
- Delayed Payment: Paying your salary a few days late (although this may be a serious breach, as detailed below, if your employer is more than a few days’ late in paying your salary).
- Incorrect Job Title: Minor discrepancies in your job title that don’t affect your role.
While these breaches may not justify drastic actions like resignation, they should be addressed promptly to prevent escalation.
Serious Breaches of Contract
Referred to as ‘material’ breaches, these are significant violations that strike at the heart of the employment agreement. Examples include:
- Non-Payment of Wages: Failing to pay your salary altogether.
- Unilateral Changes to Terms: Altering your job role, salary, or working hours without consent.
- Unsafe Working Conditions: Failing to provide a safe and healthy work environment.
- Failing to prevent your colleagues from bullying, harassing, or discrimination against you: if your colleagues are physically or verbally abusive to you in the course of your employment then this may be a serious breach of contract, as your employer is vicariously responsible for your colleagues’ behaviour in these circumstances – you can read more about this in our guides on discrimination, harassment, bullying, and victimisation
Such breaches can justify more serious responses, including legal action or resignation (which could lead to a potential claim for constructive dismissal).
There are two types of terms, generally, within a contract of employment:
- Express terms – these are terms that are set down, clearly and in writing, in the contract of employment;
- Implied terms – these are terms that are generally not set down in writing in the contract of employment but are implied into the contract in a number of other ways, including by (for example) custom and practice
Examples of Breaches of Contract
Common scenarios where employers may breach employment contracts include:
- Reducing Pay Without Agreement: Any unauthorized deduction or reduction in salary.
- Failing to pay agreed bonus or commission on time or at all: if your employer fails to pay sums that you are contractually owed (such as bonus or commission) then this would normally be a breach of contract.
- Changing Job Duties Significantly: Assigning tasks that are vastly different from those agreed upon.
- Failure to Provide Agreed Benefits: Not delivering on promised benefits like health insurance or pension contributions.
- Inadequate Notice of Termination: Dismissing an employee without the contractual notice period.
Recognizing these breaches is the first step toward seeking appropriate remedies.
Are Some Breaches of Contract More Serious Than Others?
Yes, breaches vary in severity:
- Minor Breaches: Often rectifiable and may not warrant legal action.
- Serious Breaches: Fundamental violations that can justify resignation and potential claims for constructive dismissal.
The seriousness of a breach often depends on its impact on the employee and the employment relationship.
What Practical Steps Can You Take If Your Employer Breaches Your Contract of Employment?
If you believe your employer has breached your contract, consider the following steps:
- Review the Contract: Understand the specific terms and conditions to identify the breach.
- Document the Breach: Keep detailed records of incidents, communications, and any evidence supporting your claim. This could include, for example: making a diary; keeping records of emails sent and received; taking good notes of meetings; or recording meetings (although you may need to be careful with recording meetings, as this sometimes can constitute misconduct)
- Communicate Concerns: Raise the issue with your employer or HR department to seek an amicable resolution – this could be by way of an informal discussion or a formal written grievance
- Seek Legal Advice: Consult a specialist employment lawyer to understand your rights and potential remedies.
- Consider Formal Action: If unresolved, you may file a claim in the Employment Tribunal or civil courts, or pursue alternative dispute resolution methods.
Taking prompt and informed action is crucial to protect your interests.
What If You Breach Your Contract of Employment?
Employees can also breach employment contracts, examples include:
- Resigning Without Notice: Leaving the job without serving the agreed notice period.
- Disclosing Confidential Information: Sharing proprietary confidential information without authorization.
- Making Derogatory Comments: if you make derogatory comments about your employer, or even your colleagues, in public then this may amount to a breach of contract
Such breaches can lead to consequences like loss of pay, legal action by your employer, or damage to your professional reputation.
How Can an Employment Lawyer Help You with the Breach of Contract?
An employment lawyer can provide invaluable assistance by:
- Assessing the Breach: Evaluating the severity and implications of the breach.
- Advising on Legal Rights: Clarifying your rights and potential remedies.
- Negotiating Settlements: Engaging with your employer to reach a fair resolution.
- Representing You in Tribunal: Preparing and presenting your case effectively.
Their expertise ensures that you navigate the situation with confidence and legal clarity.
Negotiate a Settlement Agreement
A lawyer can help negotiate a settlement agreement, where you agree to waive certain rights (like filing a claim) in exchange for compensation or other benefits. This can be a pragmatic solution to resolve disputes without litigation.
Next steps
If you want to discuss an issue relating to a breach of a contract of employment then you can contact one of our specialist employment solicitors using the following details:
- By email: enquiries@redmans.co.uk
- By telephone: 020 3397 3603
- By requesting a callback