Employment contract is basically the foundation of an employer and employee's professional relationship. It says all that each party may expect from the other insofar as responsibilities, remunerations, among other particular terms and conditions which form part of the employee-ship. While the employment contract is devised with the intent of clarity and no misunderstanding, disputes can never be fully avoided. Some of the disputes include wrongful termination, non-payment of wages, non-compete agreements, and much more.
These disputes, in handling, can be quite complicating and highly emotionally intense, either for the employee in a tussle against the more powerful element or for an employer through the legal quagmire in a bid to defend his interest. In whatever case it may be, the need for awareness of any dispute management practices is necessary if equity is to be achieved.
The stakes in disputes relating to contracts of employment are high because the immediate monetary well-being and professional reputations of the parties, not to say their future career opportunities, are called into address. It is, hence, fundamentally imperative that a clear methodology be formulated in respect to such disputes. In this regard, detailed knowledge of the contract terms is imperative, as is persuasive communication and awareness of when and how to initiate legal processes in mediation, arbitration, or litigation.
In this blog, we consider the key stages of handling disputes within employment contract law. We then go on to explain how these can be managed either from an employee's or employer's perspective using examples of issues which often arise, and with realistic case scenarios of how such problems can be dealt with. It is in this blog or manual that we strive to provide knowledge and tools both to the employee, who wants to defend his rights, and to the employer, who must enforce his contractual agreements against a complex world of employment contract disputes.
Understand the Terms of the Agreement
Before doing anything regarding the dispute, it is very important to read your employment contract. Contracts can be voluminous and filled with legal terms, but they really hold the key to the resolution of the conflict. Note down clauses relating to:
Termination: Condition to be considered is what provides for termination and whether the prescribed procedures were followed.
Compensation and Benefits: Ensure that payment for compensation, bonuses, and benefits is effected according to the agreement.
Non-Compete and Confidentiality Agreements or Contract: Understanding any limitations on working with competitors or disclosing company information after employment closes.
Dispute Determination: Whether the contract calls for mediation, arbitration, or any other means of coming to a determination earlier to aiming to court.
Such as in America, there was an example of a person who was terminated without any notice whereas in the appointment letter it was clearly written that he will receive 30 days in advance notice. Person quoted his case by citing the termination clause, hence proved his employer wrong and so the claim had been set of this wrongful dismissal.
General Disputes Arising Under the Employment Benefits
Unpaid/withheld Bonuses: At times, an employer may have promised a bonus, perhaps based on performance, company profits, or otherwise. When an employee feels that he is being denied that bonus, then arises a dispute.
Insurance Issues: Employees can be given different health insurance than their contract called for, or have problem areas in coverage during and/or after a leave of absence or following termination.
Other Disputes may Concern Retirement Plans: In some countries terminology known as provident funds, particularly the exact amount of matching by the employer or the vesting schedules not quite clearly understood.
Paid Leave Conflicts: This could mean an employer fails to pay for leave agreed upon in the contract, whether for vacation time, sick leave, or parental leave.
Misclassification of Employment: It also occurs that disputes develop on employee misclassifications, for instance, as independent contractors instead of employees, in order to deny the workers concerned the benefits they are entitled to.
Communicate with Your Employer
Many disputes can be resolved through open communication. Try talking it out with your employer before going to court. Often, the grievances alone, along with the contract terms, can be well-structured to sort out through mutual agreement.
Effective Communication: Some Tips
Professionalism: Do not let your feelings get involved; stick to the facts.
Document Everything: note down points of discussion and send follow-up e-mails reiterating what had been discussed.
Be as Succinct as possible while still clearly laying out the problem and refer to the parts of the contract that support your position.
Illustration: One employee, discovered that the employer in Australia had not paid her bonus, as promised in the contract of employment. He or She dealt with this quite amicably by way of discussion with the employer and provided the employer with a copy of the contract containing the clause about the bonus.
Seek Mediation or Arbitration
Mediation and arbitration are alternative ways to litigation if communication fails. This now and then includes an impartial third party who may help the disputants to settle the debate without essentially aiming to court, which within the long run spares on time and money.
Mediation: This is a process where a mediator means third party helps the parties discuss an issue or dispute so that a mutual agreement can be reached. It is non-binding; this, either party need not follow the outcome.
Arbitration: A neutral arbitrator hears arguments of both sides and then renders a binding opinion. This may be quicker than going to court, but the ruling is considered final and rarely could be appealed.
It is in Canada where a non-compete clause caused a ruckus between employee and employer, but rather than go to court, the parties involved agreed to arbitrate. That's why the arbitrated agreed to meet halfway, where the employee didn't have to pursue a career path with even lower pay, within field.
Prepare for Litigation
If there is an absolute necessity, then litigation can be resorted to. Considering how much litigation costs and how time-consuming it can be, litigation really should be a last resort; however, sometimes these are the only ways to fix a serious breach of contract.
How to Prepare for Litigation
Gather Evidence: Collect all documents relevant to your case, including the employment agreement or contract, emails, pay stubs, attendance sheet and any other records substantiating your case.
Hire a Lawyer: A professional employment lawyer can advise you of all available remedies and will represent you in courts of law.
Follow the Process: litigation might take a long time. It also continues well after the court case in court through appeals and litigation.
For instance, the case of unfair dismissal due to maternity leave in the UK is that of contract stipulated protection from such an action within that period. She went ahead to sue the employer for breach of contract with assistance of a lawyer and was compensated both for wages lost and emotional distress.
Stay Informed About Employment Laws
Employment Law varies with states and countries. Therefore, it's significant to be informed and aware of your legal rights. The law will enable you know whether your contract has been breached and how you can take action on the same.
Understand Local Employment Law including worker protection legislation, notice periods, and conditions that may exist for termination of employment.
Keep Abreast: Employment law does change; therefore, this means informing yourself about any new legislation or legal precedents that could impact your situation.
For instance, In India, increased labour legislations have recently provided better protection for gig workers and freelancers. Gig economy employees who felt they were unfairly terminated used the new law to sue their employer.
Conclusion: Navigating Employment Contract Disputes with Confidence
While employment contract disputes can be tough, knowing your legal landscape and your rights might go a long way. Be it an employee fighting for fair treatment or an employer protecting the terms of a contract, clarity, good communication, and legal insight are major keys in addressing a dispute.
With a good understanding of your
contract, proper communication, the process of alternative dispute resolution,
and being ready for the worst-case scenario of litigation, you are going to be
better placed to handle these conflicts head-on. More so, it will put you in a
great position to stay updated on employment laws and service a lawyer
whenever necessary.
