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What should you do when an employee breaches the contract?

On Behalf of | Jun 16, 2023 | Contract Law

When you hire an employee, you expect to have a smooth experience. However, this may not be the case. Your employee may breach one of the terms of the employment contract they signed. For example, they may fail to perform their required duties, meet the agreed hours or provide your competitor with crucial information.

If this happens, you should be strategic – you may not simply terminate their employment. Here is what to do.

Review the contract

If your employee breaches the contract, you should review it. Acting contrary to the agreement may also constitute breaking terms from your side. Thus, it will help to reread the contract to know if the employee has breached the contract, the steps you should take, the period to give them a termination notice, and so on.

Implement the disciplinary action

Once you have confirmed your employee breached the contract, you can implement the appropriate disciplinary action according to the agreement. It will help to do this sooner to have enough time for investigations and to find a temporary replacement.

Assess the damage

You should assess the damage that resulted from the breach of the contract, including financial losses. This will help you know how much to claim in the case.

Gather evidence

You need evidence to be compensated for the damages the breach caused. Thus, you should gather relevant information that can strengthen your case. For instance, if your employee failed to perform their duties, their work performance records should be your evidence. If they breached the confidentiality clause, you should collect the information they shared.

If your employee breached a term(s) of their contract, it may be best to get legal guidance to make the right moves.


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