An implied contract of employment is a legal agreement between an employer and an employee that is not explicitly stated in writing. This type of contract arises from the actions of both parties and the expectations that they create in the workplace. Although it is not written down, an implied contract can still be legally binding and may have significant consequences for both the employer and employee.
Implied contracts of employment can take several forms, but they generally involve an understanding between the employer and employee regarding the terms and conditions of employment. For example, an employer might make promises to an employee during the hiring process about the type of work they will be doing, the hours they will be expected to work, and the level of compensation they will receive. An employee might also make commitments to an employer in terms of their duties and responsibilities, or they might rely on the employer`s policies and procedures as a basis for their employment relationship.
The key aspect of an implied contract is that it is not explicitly laid out in a written agreement between the parties. This means that the terms of the contract are less defined than they would be in a written contract, and they may be subject to interpretation by the courts if a dispute arises.
Employers should be aware of the potential risks associated with implied contracts of employment. If an employee believes that the employer has breached an implied contract, they may file a lawsuit seeking damages. This could lead to significant legal costs and damage to the employer`s reputation. Employers should also be careful about making promises to employees that they cannot or will not keep, as this could lead to a breach of an implied contract.
Employees, on the other hand, should be aware of their rights under an implied contract of employment. If they believe that the employer has breached their commitments, they may have legal recourse to seek damages or other relief. However, employees should also be aware that the terms of an implied contract may not be as clear as they would be in a written contract, and they may need to rely on evidence such as emails or other documentation to prove their case.
In summary, an implied contract of employment is a legal agreement between an employer and employee that is based on their actions and expectations, rather than a written contract. Although it can be legally binding, it is less defined than a written contract and can be subject to interpretation by the courts. Employers and employees should be aware of the risks and benefits associated with implied contracts of employment, and should take steps to protect their rights and interests.