Mark A. Nacol Business Law Blog on Lawyers.com

THE EMPLOYMENT AGREEMENT

Tuesday, July 21, 2009 by Mark A. Nacol

Generally,
Texas is an “at will” state which gives few rights to the employee that
are not created by statute or governed by labor regulations.

The employment contract is one of the most important contracts used in business today. It is the employment contract that sets out the terms on which a company hires an individual or an individual hires a company. If properly prepared, the contract is a legally binding agreement.

Contract terms can come from a number of sources and can include the following:

Verbal agreements
Agreements in writing or document form
Agreements required by law
Implied – not written but understood to exist
An offer letter
An employee handbook
A company notice board
Collective agreements

Wrongful dismissal is a
breach in the way the employee is dismissed, i.e. without being given
proper notice or following the procedures as set out in the contract.

In order to change a contract, there must be an agreement between the parties. Under certain circumstances, the employer may need to make changes to the contract because of economic circumstances. Things that might change include:

Rate of pay
Work time
Duties and responsibilities
Work Location
Correcting an error in the contract
Disciplinary action – check disciplinary procedures to make sure this is done properly

Employees may ask for a change in a contract to:

Improve their work environment
Get a raise in pay
Get more vacation or holiday time
Change work hours

A breach of the contract occurs when either the employer or the employee breaks a provision of the contract. A breach may be the result of a verbal or an oral (implied) agreement. If
you think a breach of contract has occurred, it is best to take the
problem to the employer first and attempt to work out a solution. If you decide to take legal action, remember you will need to prove financial loss in order to get compensation. Damages are based on net pay (after taxes) not gross pay. Legal action may prompt the employer to counter sue, if the employer thinks it has a legal ground. An employer has the legal right to sue the employee for damages just as the employee has the right to sue the employer.

Posted at 16:09 PM

Topic: Business Law