What Can I Do If My Employer Breaches My Employment Contract?

An employment contract sets out important rights and responsibilities between an employer and employee, including pay, duties, working hours, notice periods and other agreed conditions. If your employer fails to follow a contractual term, you may be dealing with an employment contract breach.

The right response depends on the terms of your contract, the nature of the breach, your employment circumstances and whether other workplace laws also apply. In Australia, employment contracts operate alongside minimum entitlements under legislation, awards and enterprise agreements. An employment contract generally cannot provide less than applicable minimum entitlements.

If you believe your employer has breached your contract, understanding your legal options early can help you decide what to do next.

What Is a Breach of an Employment Contract?

A breach occurs when one party fails to comply with a legally binding contractual obligation. In the workplace, this could involve an employer failing to provide an entitlement or condition that was properly agreed in the employment contract.

Examples may include:

• Failing to pay contractual wages or other agreed benefits
• Not providing the contractual notice period
• Changing agreed employment conditions without proper authority
• Failing to provide contractual duties, hours or benefits
• Not complying with certain termination provisions
• Failing to follow a contractual procedure where the contract requires it

However, not every workplace disagreement automatically amounts to a contractual breach. The wording of the contract and the circumstances surrounding the dispute need to be carefully considered.

In Western Australia, employment arrangements can fall under either the state or national industrial relations system, depending on the employer and employee. The WA state system can include common-law employment contracts alongside WA awards and industrial agreements.

What Should I Do If My Employer Breaches My Contract?

If you believe there has been a breach of contract, avoid making an immediate decision without first understanding your position. Consider taking these steps:

1. Review Your Employment Contract

Read the entire contract carefully and identify the clause or obligation you believe your employer has breached. Also check whether an award, enterprise agreement or workplace law provides additional rights.

2. Gather Supporting Evidence

Keep copies of your employment contract, offer letter, payslips, emails, text messages, rosters, workplace policies and other documents relevant to the dispute. Fair Work guidance recommends gathering key employment records and information before raising a workplace problem.

3. Raise the Issue With Your Employer

Where appropriate, explain the issue to your employer and ask how they intend to resolve it. Putting your concerns in writing can create a clear record of what happened.

4. Consider Getting Legal Advice

Some contractual disputes can be complicated, particularly where termination, bonuses, restraints, notice periods or significant financial losses are involved. If you cannot resolve the issue, speaking with Perth employment lawyers can help you understand your contractual rights and available options.

Can Employees Take Legal Action for Breach of Contract?

Potentially, yes. The available legal options depend on the contract, the type of breach, the applicable employment system and the loss or harm involved.

Contractual disputes can sometimes involve negotiations, formal correspondence, mediation or court proceedings. The appropriate remedy may depend on the circumstances and can potentially include compensation or other orders where legally available.

It is also important to distinguish a contractual claim from a claim under workplace legislation. For example, certain underpayments, minimum entitlements and breaches of the Fair Work Act may fall within the jurisdiction of the Fair Work Ombudsman or other relevant bodies.

If you are considering legal action, an employment lawyer can assess whether the issue is primarily contractual, statutory, or involves both.

When Should You Contact Employment Lawyers?

You may want to seek legal advice if:

• Your employer refuses to honour a significant contractual term.
• You believe you have lost money because of the breach.
• Your employer has changed your employment conditions unexpectedly.
• You have been dismissed and believe the termination breached your contract.
• There is a dispute about notice, pay or contractual benefits.
• Your employer is threatening legal action against you.
• You are unsure whether your contract has actually been breached.

Choosing an experienced legal professional can help you understand the wording of your contract and the practical options available. When comparing employment law firms, consider their experience with employment contracts, workplace disputes and the type of issue you are facing.

How Can Perth Employment Lawyers Help?

An employment lawyer may review your employment contract, assess the alleged breach, explain your rights and help determine an appropriate strategy. Depending on the circumstances, this could include negotiating with your employer, preparing correspondence or advising you about potential proceedings.

For employees dealing with an employment contract breach, early legal advice can be particularly useful because contractual disputes can involve important deadlines, evidence and legal procedures.

If you are unsure what action to take, Perth employment lawyers can help you understand your position before you decide on your next step.

Frequently Asked Questions

What is an employment contract breach?

An employment contract breach generally occurs when an employer or employee fails to comply with a legally binding obligation contained in the employment agreement. Whether a particular action constitutes a breach depends on the contract and applicable law.

Can I claim compensation for a breach of my employment contract?

Potentially. Contract law can provide remedies for certain breaches, but whether compensation is available and how it is calculated depends on the circumstances, the contractual terms and the loss suffered.

Can my employer change my employment contract?

It depends on the contractual terms and circumstances. An employer generally cannot simply disregard binding contractual obligations. Changes may also be subject to applicable workplace laws, awards or agreements.

What evidence should I keep?

Keep your employment contract, offer letter, payslips, emails, messages, rosters, performance records and other documents relevant to the dispute. Maintaining a clear timeline of events can also be helpful.

Should I speak to an employment lawyer?

If the dispute involves significant financial loss, termination, contractual benefits or disagreement about your legal obligations, obtaining professional advice can help you understand your options before taking further action.

Get Advice About Your Employment Contract

An employment contract can contain important rights and obligations, and a failure to follow those terms may have legal consequences. If you believe your employer has breached your agreement, do not assume that you have no options.

Employment Lawyers Perth Wide can help employees understand employment contract disputes and assess potential legal options. Contact our team to discuss your circumstances and determine what steps may be appropriate for your situation.