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What is considered breach of an employment contract?

On Behalf of | Apr 8, 2015 | Employment Disputes |

Although they are not required, some Minnesota employers choose to have employment agreements. In general, these are legally binding agreements between an employer and an employee regarding the terms of employment. As is the case with all legal contracts, employers and employees must both adhere to the terms of these contracts. Should an employer violate the terms, the employee may have grounds for legal recourse.

Under Section 181.55 of the 2014 Minnesota Statutes, employment contracts must include the date that the employers and workers entered into the agreement, and the employment start date. Additionally, the state’s employment law requires that employment contracts include an explanation of the employee’s wages, regular work hours, how overtime work is considered and paid, and under what circumstances an employer may be entitled to make wage deductions.

As defined by Black’s Law Dictionary, breach of contract is the failure of either party to perform their duties as stated in the contract. For example, employers may be considered in breach of a contract if they neglect to pay an employee the wages stipulated by an employment contract. This may also occur if an employer refuses to provide an employee with the benefits, such as health insurance, sick time or vacation days, which were promised in their contract. Additionally, terminating a worker’s employment incorrectly, or in a way that is not allowed by the contract, may constitute a breach of contract.

In general, employees may consider attempting to resolve contract disputes with their employers first. If the problem cannot be solved between workers and their employers, people may have grounds for legal action. In these cases, workers may seek damages for the losses they suffered as a result of the breach.

This post has provided an overview of what constitutes breach of employment contracts. It is important to keep in mind, however, that each case and contract is unique. Therefore, this should be considered general information and not be taken as professional legal advice.



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