What happens if an employee breaches their contract?

If an employee breaches their contract in Texas, the employer can generally seek monetary damages for the breach. The employer must show that the breach caused actual losses. Courts will generally award damages that put the employer in the same financial position as they would have been in if the breach had not occurred. Employers can also suspend or terminate the employee’s employment contract if they breach it. This usually requires a written notice to the employee of the breach and a reasonable amount of time to correct the breach. If the employee does not correct the breach, the employer is usually entitled to terminate the contract. Employers may also be able to sue the employee for breach of contract in civil court. This is typically done if the breach is significant and the employer has suffered substantial losses because of it. In a lawsuit, the employer may seek damages such as lost wages, damages for future losses, and punitive damages. In addition to monetary damages, the employer may also be awarded attorney’s fees, court costs, and other expenses associated with filing a lawsuit. This is usually done as an incentive to employers to bring a breach of contract claim. Overall, if an employee breaches their contract in Texas, the employer has several options for recovering losses. Depending on the severity of the breach, the employer may be able to pursue legal action to recover damages and other expenses. However, employers should always make an effort to mediate or settle the dispute before filing a lawsuit.

Related FAQs

What is the difference between a fixed-term contract and a permanent contract?
Are deductions from wages allowed under employment contracts?
Are employers allowed to require employees to sign a contract for services?
Are employers allowed to require employees to work during public holidays?
What is the difference between an employment contract and an employment agreement?
What is the difference between a contract of employment and a contract for services?
Is an employer obligated to provide insurance for its employees?
Are employers obligated to provide an employee with a copy of their employment contract?
When is an employment contract legally enforceable?
Is an employer allowed to withhold wages from an employee?

Related Blog Posts

Understanding The Legal Requirements of Employment Contract Law - July 31, 2023
Creating Clarity in Your Employment Contract Drafts - August 7, 2023
Negotiating Key Issues in Employment Contracts - August 14, 2023
The Basics of Garnishment and Withholding in Employment Contracts - August 21, 2023
Essential Components to Include in Your Employment Contract - August 28, 2023