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Recovering damages following a breach of employment contract

On Behalf of | May 16, 2023 | Business & Commercial Litigation |

When you were first hired, your employer may have asked you to sign an employment contract to set out the terms and conditions of your employment. These terms may address several of the following employment-related issues:

  • The duration of your employment (start date to end date, if predetermined).
  • Salary, insurance, and other benefits.
  • Commissions and/or bonuses.
  • Employee duties.
  • Vacation/sick leave.
  • Termination procedure/severance pay.
  • Process for settling disputes/arbitration.
  • Non-compete agreements.
  • Non-solicitation agreements.
  • Non-disclosure agreements.

What happens if a party breaches the employment agreement?

Georgia employers and employees are legally required to fulfill their obligations, as specified in the agreement. Failure to abide by the agreed-upon terms constitutes a breach of employment contract. Some common examples of employment contract breaches include:

  • Employer fails to pay the amount owed to the employee for work performed.
  • Employer fails to pay severance pay upon termination of the employee.
  • Employer terminates an employee without cause.
  • Former employee wrongfully discloses confidential company information to new employer.

The party that has sustained damages a result of a breach has the right to file a claim against the breaching party to recover damages. The non-breaching party may recover monetary damages, or the court may order specific performance, where the breaching party is ordered to perform certain duties as specified in the contract.

Business and commercial law disputes often involve employers and employees disagreeing over the terms of an employment contract. Filing a legal claim may help the aggrieved party recover compensation for losses suffered as a result of the dispute.