How to Respond if Your Boss Fails to Honor Your Contract may earn commission when you buy something through the links or banners on this page.

Even though they aren’t a legal requirement, employment contracts are necessary for a healthy workplace. They are designed to protect both the employee and employer regarding salary, resignation, bonus plans, etc. So, both employers and employees can be in breach of contract. 

But, what do you do when your employer fails to honour your contract?

Ideally, you should start by proofreading the agreement with an attorney to check for missed clauses in the fine print. Once you are convinced the employer has failed to honour your contract, you should take legal action. 

Below are a few ways to proceed.

Insist on honoring the contract

The first step you should take is talking to your employer regarding the contract and its details. That ensures all parties stick to the agreed-upon terms when the deal is put on the table and signed.

The employer and employee should understand that the contract binds them together until the completion of its agreed time or termination. 

Suppose any changes are made to the contract, and one of the parties was not involved in the process. In that case, that is regarded as a breach of contract – because drafting an employment contract and signing it should involve both the employer and employee. 

Seek mediation

When talking is not feasible anymore, seeking the services of a mediator is the next option. However, both you and the employer should agree to mediation for this option to work. 

To allow for a fair mediation process, the mediator should be impartial and have no vested interest in the contract. The employer can explain the reasons for not wanting the contract to be concluded or why it should be voided.

Going to court

When matters get out of hand and the mediator cannot sort out the differences, contract lawyers can help. Taking a contract disagreement case to court allows for a fair hearing and ruling by a judge.

If the judge rules in your favour, the court will determine what compensation suits the case. In some cases, the contract may stipulate what compensation is to be given.

Keep in mind that the employer can also file a counter sue, keeping the matter in court and increasing your overall lawsuit expenses. If there is a work trade union, they might offer legal advice; thus, speaking to them is also a great place to start.

 Looking for another job

After trying not to void the warranty and mediation not working, getting another job is probably the best option. Leaving and finding a similar job elsewhere or doing your own thing is essential to avoid wasting resources and time in lawsuits. 

Depending on the contract, it might also be expensive for you to fulfil it, and finding another place to work is the cheaper option.

The law allows an employee to be treated with dignity and without harassment in any formal contract. Familiarizing yourself with the terms of your agreement could save a lot of time in dealing with any matters that may arise if it is breached or not upheld by the employer. 

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