Helen Kidd
Partner
Breach of Employment Contract
Employment contracts form the foundation of the employer–employee relationship. When a contract is breached, it can lead to disruption, financial risk, and potential claims.
What is a contract of employment?
An employment contract is a legally binding agreement that sets out your relationship with an employer or employee, outlining key terms such as pay, duties, hours, and notice periods. Even if not fully in writing, a contract can exist through verbal agreements or conduct.
For employers, it's important to understand that there's a legal obligation to provide employees with a written statement of their main terms and conditions by their first day of employment (or within a specified period). This document should clearly detail essentials like:
- Job title
- Start date
- Rate of pay
- Hours
- Place of work
- Holiday entitlement
- Sickness procedures
- Pension details
- Notice periods.
It's also important to remember that all employees are protected by 'statutory rights'. These are legal minimums (e.g., National Minimum Wage, statutory sick pay, family leave rights) that exist regardless of the contract.
There are various types of employment contracts, including full-time, part-time, fixed-term, and zero-hours agreements, each with specific implications. Ultimately, a well-defined employment contract is the foundation for a clear working relationship and provides the framework for addressing any disputes or potential breaches by either party.
What constitutes an employment contract breach?
An employment contract breach occurs when either the employer or the employee fails to fulfil their part of the legally binding agreement. This relates to either written, verbal, or implied agreements.
Common types of employer breaches:
- Non-payment or underpayment - failing to pay wages, bonuses, holiday pay, sick pay, or expenses
- Unilateral contract changes - altering pay, hours, or duties with employee consent
- Wrongful dismissal - dismissing an employee without a proper notice period
- Breach of procedures - failing to follow agreed disciplinary or redundancy procedures.
Common types of employee breaches:
- Failing to perform duties - not carrying out their work as agreed
- Breaching confidentiality - disclosing confidential company information to others
- Misconduct - serious misconduct that includes fraud, theft, or acts that are a violation of company policies.
Legal advice for Breach of Employment Contract
We act for businesses across all sectors, guiding you through disputes over contractual terms, notice periods, restrictive covenants, and wrongful or constructive dismissal. By combining legal expertise with commercial awareness, we help you safeguard your business and move forward with confidence.
From the outset, you will work with lawyers who understand the pressures of handling a workforce and the importance of finding practical, proportionate solutions.
We can support with:
- Drafting and enforcing employment contracts
- Defending claims of breach of contract
- Managing employee breaches, including misconduct or competing activities
- Handling employer breaches, such as wrongful or constructive dismissal
- Responding to tribunal and civil court proceedings
You will gain lawyers with broad industry experience, giving you the clarity to manage staff relationships effectively and protect your wider business interests.
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Frequently asked questions about breach of employment contract
We advise employers on how to deal with risks when an employment agreement is breached. Here are answers to some common questions:Our commitment to you
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