Exploring Solutions for Employee’s Breach of Contract Cases

August 2, 2023    Employment Lawyers
Exploring Solutions for Employee’s Breach of Contract Cases

Contracts are the foundation when it comes to professional relationships. They explain the rights, interests, and responsibilities of the employee and the employer. But there are always cases when an employee breaches a contract, leading to legal complications and conflicts. In such cases, employers might take legal action.


Let us discuss under what conditions employees might breach contracts, how employers might sue them, and the roles of Perth employment lawyers.


Conditions For An Employment Contract Breach


When it comes to employment contract breach can occur under certain circumstances. It’s important to understand the basics and consequences of an employee’s breach of the contract. Let us discuss the various situations when an employee breaches the contract.


Neglecting Job Responsibilities


If an employee constantly neglects their job, it can be considered a breach of their contract. This can include poor performance, inability to meet targets or any deadlines, and being consistently negligent.


Unauthorised Disclosure of Confidential Information


Sharing confidential information or data by an employee without consent or authorization can expose the company’s weakness to its competitors by harming its interests. Trust is extremely important between the employee and employer, but sharing information sensitive to the company can damage the trust.


The company might take legal action against the said employee to protect their intellectual property and maintain confidentiality.


Violating Non-Compete Agreements


Employees sometimes work for other companies which are competitors. But if it is found that the employment contract that the employee might have signed the contract with clauses that forbids them to work for competitors or start similar businesses after leaving their current job, then they can be penalised by the company.


Breaching a non-compete agreement includes participating in activities directly competing with the employer or joining a rival company. Such breaches might lead to legal consequences, so employees must fully understand the terms to avoid unintentional violations.


Engaging in Illegal Activities or Misconduct


An employee’s involvement in illegal activities or misconduct can also be a  breach of contract employment law. Such activities include theft, fraud, harassment, or any behaviour against company policies or the law.


Employers can terminate an employee’s contract in such cases, and the severity of the misconduct determines potential legal consequences.


Failing to Honor Notice Periods or Early Termination


Contracts often specify notice periods employees must follow when resigning or terminating their employment. Breaching these notice requirements, such as leaving suddenly or failing to provide the agreed-upon notice, counts as a breach. Employers may seek compensation for damages or costs incurred by the employee’s early departure.


How Can Employers Sue Employees For Breach Of Contract?


Let us discover the process and considerations involved when employers sue employees for breach of contract.


Seeking Legal Help:


The employer should consult an experienced employment lawyer before taking legal action against the employee. This strengthens the case while guiding you through the specific clauses of the contract and the breach. They help understand the complex legalities and ensure your case follows the laws and regulations.


Reviewing the Contract:


To build a strong case, employers must thoroughly review the employment contract. This includes examining the terms, conditions, and clauses that the employee violated. It is important to find the specific responsibilities the employee failed to meet and any solutions or penalties mentioned in the contract. Understanding the contract strengthens the employer’s position in legal proceedings.


Documenting the Breach:


Documentation is the most hectic yet important part of the legal process. To present a strong case in court and receive positive results, employers should keep a detailed account of the breach of the contract. Such documentation supports the allegations of contract breach and thus provides a great result.


Negotiation and Mediation:


If negotiation and mediation fail to provide a satisfactory result, employers may file a lawsuit against the employee. The process will need the employer to submit the necessary legal documents, like a complaint outlining the breach, supporting evidence, and any requested solution or compensation. The lawsuit will then follow the standard legal process, including discovery, pre-trial procedures, and, if necessary, trial.


Potential Remedies and Damages:


Employers will get various solutions and compensation for damages once they win legal proceedings. These can be specific performance, where the court orders the employee to fulfil their responsibilities as mentioned in the contract or monetary compensation for the losses caused by the breach. The specific solutions depend on the case and the judge.


Roles of Employment Lawyers When an Employee Breaches a Contract


Employment lawyers are important in helping through complex legalities and ensuring a fair result. Let’s explore their key responsibilities so that you know what to look for when you hire an employment lawyer.


Legal Consultation and Assessment:


Employers look for the expertise of Perth employment lawyers for initial consultations and assessments. Lawyers carefully review the contract terms and evaluate the situation to understand the employer’s rights and possible solutions. They guide on the best course of action, considering factors such as the severity of the breach, potential damages, and applicable laws.


Negotiation and Mediation:


Employment lawyers try to solve contract breaches through negotiation or mediation. They mediate between the employer and the employee, encouraging discussions and providing mutually acceptable solutions. Lawyers try to reduce the negative impact on both parties by clearly communicating and negotiating skillfully while protecting the employer’s interests.


Legal Documentation and Representation:


When the informal resolution does not work, employment lawyers help employers to prepare and file legal documents related to the breach of contract. They handle the necessary paperwork, ensuring the case follows relevant laws and regulations. If the case goes to court, lawyers become the employer’s legal representatives, advocating for their interests and presenting the case.


Damages Assessment and Recovery:


An employee’s breach of contract can cause financial losses for employers. Employment lawyers assess and quantify these damages. They analyse factors such as lost profits, additional expenses incurred, or reputational harm from the breach. Based on their assessment, lawyers help employers seek appropriate compensation and work towards recovering the losses incurred.


Compliance with Employment Laws:


Employment lawyers possess deep knowledge of employment laws and regulations. When an employee breaches a contract, these lawyers ensure employers follow the appropriate legal procedures and relevant laws. They help through the legal complexities, ensuring that the actions taken to address the breach are done according to the employment laws.


Litigation and Legal Defense:


Employment lawyers represent employers in court when negotiation or mediation does not work. They prepare legal arguments, present evidence, and advocate for the employer’s interests.


With their expertise and legal knowledge, lawyers try to protect the employer’s rights and secure a favourable result in the legal process.


Final Thoughts


Employee contract breaches can happen through various actions, but understanding the consequences of such breaches is essential to maintain positive work relationships and avoiding legal complications.


So, when an employee breaches a contract, employers have legal options to protect their interests and seek appropriate remedies. Employment lawyers in Perth WA help employers overcome contract breaches and find solutions that meet their best interests.

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