Repudiation of an Employment Contract

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Employment contracts can be repudiated like any other contract

According to "Black's Law Dictionary," repudiation of an employment contract occurs when an employer's actions or statements indicate that he will not perform his end of the bargain. Repudiation comes in many forms. The actions that can be taken vary based upon the type of employment and the reasoning for the repudiation.

  1. Repudiation During Employment

    • Repudiation of an employment contract by an employee includes statements that he may quit or act outside the scope of the contract. It is important to note that the firing of the employee by the employer is breaching the contract rather than repudiating it.

    Anticipatory Repudiation Prior to Beginning Work

    • Anticipatory repudiation is similar to normal repudiation, but it occurs before the performance is to occur. An example of anticipatory repudiation in employment contracts would be calling the employee and telling her that you have changed your mind and will not hire her even though an employment contract has been signed.

    Recourse

    • Depending on state law, you may be able to sue for lost wages or anticipated wages that you would have received have the employment contract not been repudiated. Consult an attorney in your state regarding your rights in this matter.

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