Breach of Implied Contract | Summary and Q&A

TL;DR

Employers can be liable for breach of contract if they terminate an employee with an express contract before the expiration, and even in the absence of an express contract, promises of job security can limit the right of employers to terminate at will.

Key Insights

• 😑 Express contracts can protect employees from wrongful termination and hold employers liable for breach of contract.
• 😮 Promises of job security can give rise to an implied contract, restricting the right of employers to terminate at will.
• 🧑‍🏭 Factors such as consistent promises, communication to the employee, and consistent conduct by the employer indicate the existence of an implied contract.
• 🍉 Specific promises made to employees regarding employment terms and termination procedures must be honored.

Transcript

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Questions & Answers

Q: Can an employer be held liable for breach of contract if they terminate an employee with an express contract before the contract ends?

Yes, an employer can be held liable for breach of contract if they terminate an employee with an express contract before the expiration, unless there is cause for termination.

Q: Is it possible for an employer to limit their right to terminate at will without an express contract?

Yes, even in the absence of an express contract, promises of job security can restrict the right of employers to terminate at will, giving rise to an implied contract.

Q: What factors indicate the existence of an implied contract?

Factors that indicate the existence of an implied contract include consistent promises made frequently by someone with authority, communication of the promise to the employee, and consistent conduct by the employer.

Q: Can raises, promotions, and positive performance appraisals guarantee future employment security?

No, while they can support an employee's claim that employment is not strictly at will, they do not constitute a contractual guarantee of future employment security.

Summary & Key Takeaways

• Some employees have express contracts, and if they are terminated before the contract ends, the employer may be liable for breach of contract.

• The majority of employees do not have express contracts, but promises of job security can restrict the right of employers to terminate at will.

• Factors that indicate the existence of an implied contract include consistent promises from someone with authority, communication of the promise to the employee, and consistent conduct by the employer.