Understand breach of contract
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A contract of employment is a legal agreement which comes into being
when an employee agrees to work for an employer in return for pay. The terms of a contract are the rights and obligations which bind the
parties to the agreement and come in two forms - express and implied. Express terms are those which are expressed orally or actually
written into the contract. Employers are legally obliged to put certain express
terms in writing in the form of a 'written statement of particulars.' These
include details such as job title, rate of pay, holiday entitlement and pension
schemes. Implied terms refers to those that are too obvious to mention or
those which both parties would assume to be incorporated into the contract.
This includes statutory rights such as equal pay, minimum wage, sick pay and
freedom from discrimination on the grounds of sex, race or disability. Some terms may be implied through accepted custom and practice in a
particular profession or with a particular employer. There is also an implied
mutual trust and confidence on behalf of the employer and employee. If an employer or employee breaks either the express or implied terms
of a contract of employment or any other contract connected with employment
then a breach of contract occurs. Breach of contract claims by employees If an
employee suffers a measurable financial loss because their employer breaches
the contract of employment or any other contract connected with employment, the
employee may be entitled to seek damages by making a claim for breach of
contract. Such claims are normally made in a civil court although a claim can
be made to an employment tribunal if the following occurs: Employment tribunal claims must be made within three months of the
date the job ended. Civil court claims can be made up to six years from the
date on which the alleged breach of contract occurred. The amount a tribunal can award for breach of contract is subject to
an upper limit which at the time of writing (June 2003) is £25,000 but civil
court awards can reflect the full amount of damages suffered by the dismissed
employee. Breach of contract claims by employers If an
employer suffers a measurable financial loss because an employee breaches the
contract of employment or any other contract connected with employment, then
the employer may be entitled to seek damages by making a claim for breach of
contract. Such claims are also usually made in a civil court. An employer can
only make a claim in an employment tribunal if: Employment tribunal claims by an employer must normally be made
within six weeks of the date on which the employer receives from the tribunal a
copy of the dismissed employee's originating application. Claims to civil
courts may be made within six years from the date the alleged breach of
contract occurred. The amount a tribunal can award for breach of contract is subject to
an upper limit which at the time of writing (June 2003) is £25,000 but civil
court awards can reflect the full amount of damages suffered by the employer.
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