Breach of Contract Print E-mail
The most likely circumstance where there is a breach of contract claim is where the employee is in a union and covered under a collective bargaining agreement between the union and the employer. Such a contract normally has a provision wherein the employer must demonstrate that it had good cause to terminate the employee.  Most union contracts also include a grievance and arbitration clause setting a procedure for resolving disputes.  To pursue a breach of contract claim under a union contract it is essential that the employee file a grievance over the termination or layoff.  The time frame for doing so is often very short, often only a few days. The employee must at least attempt to exhaust his/her rights under the grievance procedure before pursuing other alternatives based on the breach of contract claim.  Business executives or professionals may also have a breach of contract claim based on an explicit contract negotiated between the parties.  Such a contract will routinely include a provision under what circumstances the individual can be separated, the penalties for doing so and a dispute resolution procedure.

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In 1999, preparation for an EEOC case cost an average of $20,000.

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© Noisy Cloud 2007
This is not legal advice
for legal advice, please contact an attorney.