COVID-19 has considerably affected the lives of people and companies around the world. Many breaches of contract, shops, restaurants closed, circulation limits, and airline tickets canceled in the economic field. All of these measures, at the moment, are necessary to avoid a more significant problem – human existence.
The Canadian government has been taking steps to minimize the consequences of the economy, employees, and entrepreneurs.
All of these measures have economic, social consequences and require legal solutions. For example, many people are working from home, and many business owners are having problems with labor laws and employment contracts. Also, sometimes, they are forced to do a breach of contract with the employees.
Definition of contract
By definition, a contract is a formal agreement entered into by the parties that establish the clauses that create and define the law.
For employment contracts, the contract formalizes issues such as workday to be completed and remuneration to be paid. If the employer fails to pay the remuneration, there is a breach of contract. It may also mean that an employee has breached one or more terms of the contract in the same situation.
In an employment contract, terms and conditions of work are defined, for example:
- Rights and Duties of both parties
- Payment Fee
- Number of hours worked
- Vacation Terms
- Work responsibilities
- Non-compete or non-disclosure agreements
- Termination requirements
- Overtime requirements
- Confidentiality terms
In general, these terms are described in all employment contracts, but it is possible to include other specific clauses.
Breach of employment contract
Breach of any contractual obligation is known as Breach of Contract. Depending on the agreement, a breach can occur when one of the parties does not comply with the agreement’s terms.
Once a contract between employer and employee is signed, they cannot terminate their employment relationship outside the terms discussed in the agreement.
Breach of contract by the employee
None employer wants to experience a breach of contract. The employer invests time and resources in preparing and advertising vacancies and selecting the best employment.
When an employee leaves, the company needs to deal with embezzlement in the team that needs to be completed or expanded to ensure the goals are set. Depending on the embezzlement, it can represent a significant loss for the company.
If a breach of contract occurs, in addition to all the bureaucracy that the process involves, the company will probably have to face opening another process of selection, training, and adaptation of professionals.
Thus, in a breach of contract, the employee causes significant damage to the company. Depending on the contract’s situation, he may be penalized and pay compensation to his employer.
In these situations, a lawyer will assess the impacts of the breach of contract and the possible resources and indemnity amounts.
Breach of contract by the employer
Breach of an employment contract can also occur through the action of an employer.
In the event of a breach of contract by the employer, you must take some steps before taking legal action, such as verifying that you have a copy of the signed employment contract and analyzing whether the terms of the agreement have been breached.
Next, it is ideal that you try to discuss the situation with your employer. The breach of contract was often unintentional. That is, you can resolve the matter with a conversation.
If you cannot resolve the problem, you must seek a lawyer specializing in the matter even after diagnosing the contract’s breach and trying to have a friendly conversation.
A lawyer may try to make a new negotiation through mediation and arbitration or take legal action.
Remedies to Breach of contract
The first step is the recognition that a breach of contract has indeed occurred. The remedies to breach of contract will depend on what exactly was breached in the contract. In general, the possible solutions are:
- Out-of-court settlement: Given the Coronavirus situation is the impact that this causes in contracts; ideally, both parties seek common sense so that they can find common ground and promote an extrajudicial agreement.
- Judicial agreement: If the first attempt is invalidated, it is possible to make an action plan to fulfill the obligations described in the contract to be fulfilled.
- Mediation, arbitration, or conciliation: If the conflict is not resolved, a lawyer may use mediation, arbitration, or conciliation.
Do I need a lawyer to deal with the breach of contract?
An experienced litigation lawyer can help you analyze your contract and see if there has been a breach of contract. Also, the lawyer will be able to guarantee that your rights are guaranteed.
At Juzkiw law, we have experienced lawyers who can help you in civil litigation and employment law situations. Call us for more information.