Understanding the Ramifications of Breaching an Employment Contract

Most disputes resulting from breach of contract can usually be easily addressed through the dispute resolution mechanisms outlined in an employment contract; however, in certain instances this is not an option.

If the matter cannot be settled with legal advice alone, taking legal action through industrial or employment tribunal proceedings may be your next best option. Your best course of action will depend upon the nature and seriousness of alleged breaches.


The breach of employment contract usually results in financial damages for both parties involved, with those not breaking entitled to receive what would have been earned had the contract not been breached – including expectation damages (what would have been earned had they not broken it) and liquidated damages – estimated damages awarded by courts when damages cannot be quantified monetarily.

If the breach is minor and has minimal ramifications, an internal solution or mediation may suffice; otherwise legal action should be pursued as a solution.

An experienced wrongful termination attorney can assist in assessing whether your employer is upholding their contractual promises. If this is not the case, legal action should be taken in order to enforce your rights and claim financial reparations for damages related to specific performance of your contract, such as lost wages or benefits.


if an employer breaches a promise made to you, legal recourse may be available through tribunals or courts. However, depending on whether this happened during employment or post-termination and how your situation transpires will determine which type of remedy applies.

In general, when an employer breaches a contractual term that results in tangible harm for another party, they must compensate them accordingly. Damages can take many forms: financial compensation is one possibility while emotional distress or inconvenience compensation might also apply.

Compensatory damages are calculated based on what would have been received if your contract had been upheld, including your pay and benefits. Some contracts contain liquidated damages clauses which set a specific amount in case of breach; these make calculating damages easier. Other forms of damages could include unjust enrichment (when an offender receives benefits that were meant to go to someone else) and rescission (where someone must fulfill their contractual obligations), while sometimes employers can even be required to perform specific work under specific performance contracts as part of specific performance agreements.

Specific Performance

An agreement breach will typically result in damages; these monetary reparations payments serve to compensate the non-breaching party for what they would have received had the contract been honored. Compensation may cover items as diverse as emotional distress and income loss.

Specific performance is a unique form of compensation available when financial damages simply are not enough. This is often seen in contracts for sale of real estate or collectibles.

It’s essential that if you believe that your employer is violating your employment contract, that you have an experienced lawyer on your side to review the contract, file a claim and fight for your rights in court. They can also advise on available defenses like innocent misrepresentation and mistaken assumption – contact our office to learn more about them!


Your recourse when an employer breaches the terms of your contract depends on its nature and severity. When it comes to minor violations, informal resolution is usually best with direct dialogue with either your manager, HR department or mediators or mediation services.

Compensatory damages are an often used remedy in employment contracts, serving to compensate the injured party financially for breach of contract violations that lead to lost wages, expenses or other harms. Furthermore, certain contracts include liquidated damages clauses which specify an exact sum to be paid in case of breach.

In cases of major breaches where it’s obvious that one party has been significantly damaged by another’s misconduct, legal action and court claims for compensation may be necessary to seek justice from them. Usually this option will only apply if former employees of a company remain there rather than current employees still working there.