CP Law Associates

What is a breach of employment contract?

When it comes to employment contracts, both employers and employees can be in breach of their contracts, so it is important to understand what a breach of contract is and the process you should follow if you breach your contract, or your employer breaches theirs.

What is a breach of contract?

A contract of employment is a legally binding agreement between you and your employer. A breach of contract occurs when either you or your employer breaks one of the terms. One example of this could be you not working the agreed hours set out in your contract or your employer does not pay you correctly. 

When it comes to pay, you have additional protection and in some situations your employer may be prevented from taking money out of your pay.

If you think your contract has been breached by your employer its important to check the terms of your contract. 

Breach of contract by an employee

If you think you have breached your contract, it is important that you try to settle the matter with your employer. But it is important to note in the same way that you are able to sue them for a breach of contract, they are also able to sue you. 

The court will reward damages if there has been a financial loss. An example of a financial loss is if you do not give enough notice for leaving, which could result in your employer having to hire staff at extra costs to fill your role. 

Breach of contract by an employer

Your employer may be in breach of their contract with you if they: 

  • Employer pays you late
  • Withdrawing a job offer once it has been accepted 
  • Wrongful dismissal 


Wrongful dismissal is a breach of contract in the way you were dismissed, for example if you are dismissed without being given a proper notice, or without following the procedures in the agreed contract.


Taking legal action for breach of contract

If you are unable to sort the problem out with your employer or employee it is possible to seek legal action. It is important to remember that you will only get compensation if you are able to prove a financial loss. 

Our team at CP Law Associates have an employment law team available and are ready to represent you as an employer or employee. 

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