What is a breach of contract?

A breach of contract, in simple terms, is a breach of an oral or written agreement between two parties. In the context of human resource management, it usually is a breach of an employment contract. When an employee joins a company or when an employer hires an employee, they both sign a contract named employment contract. It stipulates the obligations that both parties have to fulfil for a smooth tenure. A breach of an employment contract happens when either of the parties fails to fulfil any of the conditions in the contract. For example, an employer failing to pay the said amount of wage to the employee or an employee failing to commit to the amount of hours of work agreed.

Common types of breach of contract by employees

As we have observed, both employees and employers can commit a breach of an employment contract. Here are some common examples of how an employee might breach a contract:

  • Unauthorized Disclosure of Confidential Information
  • Misuse of Intellectual Property
  • Breach of Contractual Notice Period
  • Failure to Meet Job Expectations
  • Violation of Non-Compete Agreement
  • Excessive Absenteeism or Unapproved Leave

Common types of breach of contract by employers

Breaches of contracts by employers occur when they fail to fulfil the promises outlined in the employment contract, such as payment, safety, and fair treatment. Here are some common scenarios.

  • Non-payment of wages or benefits
  • Failure to provide a safe working environment
  • Discrimination or harassment
  • Unfair termination or wrongful dismissal
  • Breach of confidentiality or non-disclosure agreements
  • Unilateral changes to employment terms or conditions
  • Failure to grant entitled leave or time off