Breach Of Employment Contract: What It Means (2026)

What Constitutes a Breach of an Employment Contract?

A breach of employment contract occurs whenever an employer or employee fails to perform a material term of their agreement. The terms are relatively easy to discern when the parties have a written agreement. However, the terms of an implied contract may be more difficult to determine.

Common Examples of Employer Contract Violations

An employer breach occurs when the employer fails to carry out its contractual duties or prevents the worker from carrying out their terms under the agreement. Thus, some common examples of employer breaches include:

• Failing to pay the worker
• Failing to reimburse the worker for expenses as agreed
• Denying the worker entry into the workplace or failing to provide necessary materials

When an employer breaches their duties, the employee is usually excused from carrying out their contractual duties. For example, in California, an employee can quit when the employer breaches an employment contract.

How to Identify and Document a Contract Breach

A breach of contract will usually be fairly obvious because it will frustrate the purpose of the agreement. For example, suppose a builder contracts with a painter. If the builder does not provide the advance payment required by the contract, the painter cannot buy the paint and supplies. Similarly, if the builder does not show up on the scheduled date to unlock the home, the painter cannot perform the contracted services.

Steps to Take When Your Employer Violates the Agreement

You should document the breach as well as the events leading to and following the breach. Preferably, you will have written documentation, such as emails, text messages and letters.

Review your contract to determine how disputes are meant to be resolved. For example, many contracts call for notice and a period to cure the breach. Follow the dispute resolution process.

Finally, consider consulting a contract lawyer to discuss your legal options for remedying the breach and recovering any losses.

Legal Remedies and Possible Outcomes

Under business law, the remedies for a breach of employment contract can include damages. These damages include whatever you expected to earn from the contract. They might also include any consequential damages, like your time and fuel commuting to the job that you were unable to perform.

Rely on ConsumerShield’s Resources and Tools

ConsumerShield provides forms and educational materials to help you understand your legal problems and the possible solutions. Explore our resources as you deal with your legal issues.