Want To Break an Employment Contract? What To Know

Employment contracts are central to a profitable relationship between an employer and employees. But they are also a type of contract which can present legal problems if you want to end your employment or otherwise break that contract. What can help you avoid an expensive lawsuit over a breach of employment contract? Here are a few key things to know about these agreements and their validity. 

What Is an Employment Contract?

All employment relationships are contracts, but most are informal. Most states assume that a person is employed on an at-will basis, meaning both parties may choose to end the contract at any time. Because you can leave at any time, there are relatively few lawsuits over breaching such a contract. Issues are more likely to be over illegal or unfair employment practices on the employer's part. 

Legal disputes over breaking employment contracts, then, generally happen over contracts that limit one or both parties from exiting the contract early. They may include things like financial damages if you quit early, a mandated time period, or stipulating the reasons for which the employee may leave. These agreements may be oral or written and still be legally enforceable. 

Is the Employment Contract Valid?

If you want out of an employment contract, the first thing to do is determine if it's valid on its face. Remember, just because you signed it doesn't always mean that you can be held to it. An attorney can help determine if the document you signed is really a contract. Often times, an employee really is “at-will” and the “contract” is a list of obligations the employer expects from you. 

Contracts must include certain wording and components in order to be legally enforceable. They must be clear on the details, which might include the period of employment, pay rates, job duties, and what is expected of both sides. In addition, both parties must be in agreement about those terms. If you and the employer understood the contract differently, it may not be valid. 

Certain inclusions can also render a contract void. For instance, maybe you signed a contract that required you to work a certain amount of time each week without being paid overtime for non-exempt labor. Since this is in violation of federal labor laws, the contract is likely to be unenforceable. 

Even though you may have read the contract before signing it, an employment attorney should go over it again. Many details that may render it voidable—such as insufficient consideration or the difference in employment law from state to state—are not easily recognized by a layperson. 

Is the Employer in Breach of Contract?

Why do you want to leave your employment? Depending on the circumstances, you may find that the other side is actually already in breach. Perhaps you were hired to serve as the accountant for the company for two years, but the boss expects you to answer phones, make sales, or handle HR on top of your accounting responsibilities. If this violates the terms of your valid employment contract, the company may have breached their duties. 

In this case, you may serve notice to the employer to return to compliance with the actual contract. If they fail to make changes, you may be in a good position to terminate the contract for cause. You may then decide whether you want to move ahead with terminating the contract on your end or ask a judge to issue a court order voiding it. 

Where Should You Start?

Before you take any steps toward ending an employment contract early, meet with a qualified employment lawyer. The team of legal representatives at Allen D. Arnold Attorney at Law can help. For nearly 20 years, we've assisted employees in taking on unfair employment practices throughout the state of Alabama. Call today to learn how we can help you find the best way to end your contract while minimizing problems. Please note no contract can be evaluated without an attorney reading the document and such a review often times incurs a fee. 

Alabama Rules of Professional Conduct Notice: No Representation is made that the quality of legal services offered is greater than that of other lawyers. The information contained on this website is not a substitute for legal advice, and reading it does not create an attorney-client relationship.