Trust is a critical element of a prosperous employer-employee relationship. But what happens when that trust is broken? When an employee fails to uphold their end of the bargain, it can have severe consequences for the entire organization.
Breaches of contract can lead to financial losses, damage to reputation and even legal liability. As an employer, it’s essential to know how employees can breach their contracts so you can take precautionary steps to prevent these issues and protect your business.
Common examples of employee breach of contract
In the same way that an employer can breach an employment contract, the employee may also be in breach of the terms of the agreement. It can be a breach of either a written term or an implied term in the context of the employment relationship.
One example of a breach of an express term is if an employee fails to perform or carry out their duties and responsibilities. They are in breach if they cannot carry out their tasks as written in their employment contract.
Resigning from their post to apply and work for a competitor is another example of an employee breach of contract. The same goes for starting a business in direct competition with their former employer.
Implied breach of contract
Employees must also uphold the implied terms in the context of the employee-employer relationship. Common examples of an implied breach of contract by an employee include the following:
- Falsifying personal and work records
- Working for another company at the same time as working for the employer
- Demonstrating gross misconduct, including possession of dangerous substances or alcohol at work, physical violence, theft or breaches of health and safety policies
- Taking advantage of their role for their personal advantage
- Disclosing confidential business data for their personal gain
This issue can have severe consequences for employers, but being aware of the common examples and being proactive can help mitigate these risks. With this knowledge, employers can take steps to prevent these problems, address them promptly when they arise and protect their business from financial and reputational harm.