Employment contracts are legally binding agreements between an employer and an employee, often created with the help of a qualified employment lawyer. Since employment contracts are legally binding, there can be serious consequences if they are breached.
However, what many people don’t realise is just how serious these consequences can be. In the rest of this article, we’ve covered everything you need to know about what could happen if you breach your employment contract. If you believe you may have broken your contract, we’d highly recommend speaking with a lawyer as soon as possible to minimise the damage.
One thing that’s worth quickly noting here is that contracts can be breached by employees and employers alike, so keep that in mind.
What Are the Penalties for Employees Breaching a Contract?
Under Australian law, employment contracts are legally binding documents, and there can be significant penalties if you break them. Two of the most common penalties include:
Unfortunately, complex employment contracts are often written well and truly in favour of the employer. It’s extremely important to work through your contract with an employment lawyer before you sign it. Doing so will help ensure you suffer minimal penalties if you do have to break contract.
What Are the Penalties for Employers Breaching a Contract?
Although many people don’t realise it, an employer can breach an employment contract just as easily as an employee. And similarly, they can be faced with significant penalties, including:
As you can see, it’s just as important to employers to ensure they stick to a contract as it is for employees.
What Should I Do if I Feel My Contract Has Been Breached?
Regardless of whether you’re an employer or an employee, you should pursue legal action if you feel that your contract has been breached. Before you notify the other party, it’s a good idea to spend some time with a lawyer working through the contract and identifying exactly how the breach occurred and what damages it has caused.
The lesson here is that employment contracts are serious legally binding documents that must be treated with respect. It’s also important to ensure you spend some time reviewing your contract before you sign it, otherwise, it may contain clauses or other things that you’re not aware of – and these can lead to you breaking contract without even realising it!
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