What to do if you face a breach of employment contract claim.
Common courtesy says that if we promise something we should stick to it. It’s been the backbone for business especially, for decades.
When starting a new job, one of the first things you should be provided with is a contract. And what is in this contract? Promises. Think about it: we will pay you ‘x’ if you agree to work ‘y’ number of hours. From both the employee and the employer there are promises made.
But what if those promises aren’t kept? What if they don’t pay you ‘x’, or you refuse to work ‘y’? What if there is a breach of the employment contract, whether express or implied?
What is a breach of contract?
Simply put, a breach of contract happens when either the employer or employee does not follow an agreed term, as specified either in writing in the employment contract, or as implied when a job offer is made – also known as a ‘broken contract’.
As an employee, it could be that an employer has varied the terms of the contract without first consulting with you. This could be seen as a breach of contract and, in more serious cases, could lead to a constructive dismissal claim.
What counts as a breach of contract?
Most of the time, where an employment relationship exists so too will a contract – express or implied. Whilst this can be implied (a verbal agreement) it is always recommended that the terms are set out is in writing and agreed by both parties. This is not only a legal requirement but also gives both the employer and an employee a level of security in case of an alleged / potential breach.
If a breach occurs, and you can prove that a financial loss has occurred as a result, then compensation may be able to be claimed. This could be claimed because of, but not limited to:
- non payment of wages or travel expenses;
- non payment of normal holiday pay or contractual sick pay;
- not being payed during a notice period where dismissal has occurred;
- if dismissed without proper notice, the failure to be paid in lieu of this; or
- changes to the details of your contract such as job duties without proper consultation.
This is far from an exhaustive list however.
It’s important to note that counterclaims are able to be made by an employer where financial loss is being claimed as part of a breach by an employee.
I’m an employee and think there may have been a breach of contract. What should I do?
First thing’s first – try not to be accusatory. It could be that a genuine mistake has been made and that it’s easily corrected.
Instead, speak to the other party about any grievance you may have. Indeed, even before legal action is taken it’s important that you at least try to resolve any conflict in other ways. Mediation is often favoured, but if the issue can be resolved even before a legal process can begin then it will be better for all parties involved.
If however the issue can’t be resolved, then legal action may be the next step.
As an employee, you should note that you will have to prove any financial loss you may be claiming compensation for. There’s also the possibility that an employer will launch a counterclaim if they feel it is appropriate.
If the a breach of contract claim was brought by an employee, it will either go to an employment tribunal or civil court.
In the employment tribunal route, your employment must have ended. Note you cannot seek to claim more than £25,000 from a tribunal as the maximum amount awarded is capped.
For civil cases, there are fees to pay, however the length of the case will likely last longer.
I think one of my employees has breached their contract. What should I do?
As with employees, talk it over first. Mistakes happen and more often than not issues can be resolved quickly and efficiently.
Typically, an employee will most commonly breach their contract in one of two ways:
- quitting without giving or working their contractual notice period; or
- going to work for a competitor when a contract does not allow it.