The Alleged Verbal Employment Agreement
A woman claims she was offered and accepted a position during an interview. In other words, there was a verbal employment agreement.
She gave notice at her two existing part-time jobs and quit both of them.
One week after the interview, she showed up to complete paperwork at what she thought was her new employer. However, she was told to go away, there was no job, and the company was not hiring.
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The Breach of Contract Lawsuit
Unable to get her old part-time jobs back, the woman sued the company for breach of an oral employment contract and related claims.
It remains to be seen who will win this dispute: the alleged employee or the company.
However, even if the company wins the lawsuit, the legal fees and expenses will likely cost more than a couple years of paying the woman a salary.
How To Minimize This Risk
How do you avoid this type of mess with job applicants?
First, have a policy of only making your job offers in writing, making the offer contingent upon signing an employment agreement, and don’t deviate from that policy.
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Second, use a professionally prepared employment agreement that identifies the respective rights and responsibilities of the new employee and you as the employer. If you don’t have one you regularly use with your workers, check out our firm’s Business Contract Legal Protection Package.
Yes, it takes a little time to do this right. But it costs a lot less than a lawsuit because you cut corners in your hiring process.