What Constitutes a Fundamental Breach of Employment Contract

As an employee, it is crucial to understand the terms of your employment contract to avoid potential breaches. A breach of employment contract occurs when either the employer or the employee violates one or more of the terms of the contract. In this article, we will explore what constitutes a fundamental breach of employment contract.

A fundamental breach of employment contract is a serious violation of the contract that goes to the heart of the employment relationship between the employer and the employee. It is a breach that is so significant that it fundamentally alters the nature of the agreement. Examples of fundamental breaches include:

1. Failure to pay agreed-upon wages or benefits: One of the most critical terms of an employment contract is the compensation package. An employer`s failure to pay an employee their agreed-upon wages or benefits on time constitutes a fundamental breach.

2. Unjust termination: An employer cannot terminate an employee`s contract without just cause. If an employer terminates an employee without providing a just reason for the termination, it is a fundamental breach.

3. Breach of confidentiality: Many employment contracts contain a clause related to confidentiality. If an employee discloses confidential information, it can constitute a fundamental breach of the employment contract.

4. Failure to comply with the company`s policies and procedures: Many employers have policies and procedures in place that employees must adhere to. If an employee fails to comply with these policies and procedures, it could lead to a fundamental breach of the employment contract.

5. Breach of non-compete clause: An employer may include a non-compete clause in the employment contract, which prohibits the employee from working for a competitor for a certain period. If an employee violates this clause, it can be a fundamental breach of the employment contract.

In conclusion, as an employee, it is important to understand the terms of your employment contract. A fundamental breach of the employment contract can have serious consequences, including termination of employment and potential legal action. If you feel that your employer has breached your employment contract, seek legal advice to understand your options.

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