What constitutes a breach of contract in an employment agreement?
If one or more of the terms in a valid employment contract, whether written or verbal or some combination, is violated by either an employee or employer, this is typically called breach of contract. In the case of an employee, it is frequently compensation terms that are at issue, having to do with the payment of bonuses or commissions. It might relate to implied terms, such as a “for cause” provision implied into the agreement of an executive or officer or other employee who has been working with the company for many years and is terminated. Severance and stock option provisions might also be at issue. Companies will sometimes invoke confidentiality provisions or trade secret provisions against the employee without good reason, especially when the company is concerned that the employee may otherwise bring a valid lawsuit.
