Written contracts, verbal agreements, and even employee handbooks can constitute a legal contract for an employee. If you have questions about an employment contract or believe your rights may have been violated, our law firm could provide you with guidance. An employment law attorney in Saginaw can advise you on contract issues.
What Makes a Contract Legally Binding?
For an employment contract to be legally binding and enforceable, it must have the following elements:
- Offer – The offer is a proposal of employment from an employer. It includes information about the job, work conditions, and pay.
- Acceptance – Acceptance is an explicit agreement on the part of an employee.
- Consideration – Consideration is the exchange of compensation for work.
- Mutual Assent – Also called a meeting of the minds, this is the consent of both parties to the terms of the contract.
- Capacity – This is the requirement that both parties have the ability to enter into the contract. All parties must be old enough to consent, of sound mind, and not doing so under coercion.
- Legality – For a contract to be upheld, it must comply with all federal and state laws and labor laws.
Contracts can be written or verbal, but written contracts are usually easier to prove. In some situations, an employee handbook could constitute a contract. For example, a handbook may be a contract if it outlines specific terms of employment or detailed disciplinary or compensation policies.
Common Terms Outlined in an Employment Contract
A legal contract for an employee typically outlines the following terms and conditions of employment:
- Job title and job duties
- Compensation, including wages, salaries, commission, bonuses, and benefits
- Work schedule, including overtime expectations
- Work location, either remote, hybrid, or on-site
- Duration of employment
- Grounds for discipline or termination, including notification requirements and severance details
An employer can change the terms of an employee’s contract. The employer must give notice before doing so, and the employee must enter into the new agreement (or choose to end their employment). If the employer does not do this, it could qualify as a breach of contract.
Can an Employer Fire You If You Have an Employment Contract in Michigan?
Michigan is an “at-will” employment state. At will generally means that either an employee or an employer can terminate the employment at any time for any reason.
However, if an employee’s contract contains clear termination policies or discipline procedures that the employer did not follow, it could be a breach of contract. An employer also usually cannot fire an employee without valid cause if their contract has a fixed term of employment.
If an employer fires an employee, they must still pay that employee the wages or salary they have earned. They must also pay any severance or benefits guaranteed by their contract after termination. It is illegal for an employer to withhold your check under the state’s employment laws.
What Can You Do About Contract Violations?
Employers and employees can take legal action for breach of contract. Issues that may lead to a lawsuit include:
- Breach of non-compete clauses
- Breach of confidentiality
- Disputes over promises of compensation
- Wrongful termination
If you believe that your rights as an employer or employee have been violated, our law firm could help you review your contract and provide you with representation if necessary.
Contact a Michigan Employment Law Attorney with The Mastromarco Firm
The Mastromarco Firm represents corporations, businesses, and employees from all walks of life. Whatever your legal issue, we are well-equipped to handle your contract-based employment case. Contact us today to learn more about working with our lawyers in Saginaw.