As an employee, your employment agreement is a crucial document that outlines the terms and conditions of your employment. It includes details about your job responsibilities, compensation, benefits, and other crucial information. However, if you breach the terms of your employment agreement, you may be liable for damages.
A breach of employment agreement occurs when either the employer or the employee fails to comply with the terms and conditions set out in the agreement. Examples of a breach of employment agreement include failing to fulfill job responsibilities, disclosing confidential information, or violating non-compete clauses.
If an employer or employee breaches the terms of the employment agreement, a range of damages can occur. The following are some of the most common types of damages associated with a breach of employment agreement.
1. Direct damages: These are monetary losses that can be directly attributed to the breach of the employment agreement. For example, if an employee violates a confidentiality clause and discloses confidential information, the employer may suffer financial losses as a result.
2. Consequential damages: These are indirect losses that result from the breach of employment agreement. For example, if an employee breaches a non-compete clause and starts working for a direct competitor, the employer may lose customers or market share, resulting in financial losses.
3. Liquidated damages: These are pre-determined damages that the parties agree upon in the employment agreement. These damages are often used in cases where it may be difficult to calculate the actual damages resulting from a breach of the agreement.
4. Injunctions: These are court orders that require the parties to comply with the terms of the employment agreement. For example, an employer may seek an injunction to prevent an employee from disclosing confidential information.
5. Punitive damages: These are damages awarded to punish the breaching party for their behavior. Punitive damages are rarely awarded in employment law cases.
In summary, breaching an employment agreement can result in significant damages, both financial and otherwise. Whether you are an employer or employee, it is crucial to ensure that you comply with the terms and conditions of your employment agreement to avoid potential legal consequences. If you have questions about employment agreements or need assistance with an employment law matter, consult with a qualified employment attorney.