Termination in Breach of Contract: Were You Wrongfully Fired?

Getting fired by your employer can deal a serious blow to your confidence, your self-esteem, and your finances. As is the case in the vast majority of states, New Jersey employees are presumed to be employed “at will.” In short, this means that they can quit or be fired at any time for any reason that isn’t illegal—or for no reason at all.

There are, however, exceptions to this general presumption of at-will employment. One such exception is when an employment contract outlines specific conditions under which an employee may quit or be terminated. Employment contracts can be privately negotiated between an employer and employee, the result of collective bargaining, or even implied by an employer’s policies and procedures. In this article, we’ll examine various types of employment contracts that could provide exceptions to at-will employment, when firing may constitute a breach of contract, and how to enforce your contractual right to job security.

Do you have a contract with your employer?

Employment contracts are legally binding agreements that describe the terms and conditions of employment. They may include details about pay, benefits, promotion, performance reviews, disciplinary procedures, leave policies, employment duration, and conditions for termination. If your employer violates any of these terms, they can be held legally liable.

If you weren’t asked to sign a contract at hiring, you might assume that you don’t have one. However, an employment contract can be created in a variety of ways.

Implied Contracts

Even in the absence of a formal employment contract, it’s possible for an employer to be bound by contractual employment obligations. This can happen when an employer makes spoken promises or has outlined specific policies and procedures, such as in an employee handbook. While oral agreements are legally binding, it can be difficult to prove their existence. To enforce an oral contract, you’ll need some form of corroborating evidence, such as witnesses to the oral agreement, memos, or other communications that support your assertion that the agreement exists.

If your employer has written policies and procedures for terminating employees, this could also constitute a binding employment contract that provides an exception to the at-will employment rule. New Jersey courts have found that written terms and conditions of employment, such as disciplinary processes and termination procedures, can create an enforceable employment contract that alters an employee’s presumed at-will employment status.[1] For example, if your employer has a “three strikes” policy, an escalating system of verbal and written warnings, or a code of conduct that details terminable offenses, they may be held liable for failing to follow such policies.

Did your employer breach the contract by firing you?

An employer breaches the employment contract when they fail to fulfill obligations specified by the agreement. Once it’s determined that your job was covered by a valid employment contract, the next step is to identify your employer’s obligations under that contract. Not all employment contracts remove an employee’s at-will status; in fact, some may explicitly state that employment is at will. However, if your contract stipulates a period of employment (for example, three years) or describes conditions and procedures for termination, then your employer is bound to comply with those terms. Bear in mind, however, that a contract is a two-way street. One of the elements of proving contract breach is demonstrating that you’ve held up your end of the deal.[2]

How can you enforce your contractual rights?

If you believe you have been wrongfully terminated because your employer breached your employment contract, there are several steps you should take to enforce your rights.

• Identify the contractual language, policy, procedure, or oral agreement that you believe your employer has violated. This will form the basis of your breach of contract claim.
• Keep detailed records of communications with your employer about your termination.
• Retain documentation of your work performance, such as performance reviews, pay raises, or acknowledgment of completed duties.
• Identify witnesses who can support your assertions of fact.
• If you’re a member of a labor union, contact your union representative.
• Seek legal advice from an experienced employment attorney.

An experienced employment attorney can be invaluable in wrongful termination cases. They can help you understand your contractual rights, determine the validity of your case, collect and organize evidence, navigate the complexities of the legal system, and help you build a strong case. In some cases, an attorney can help negotiate a settlement and avoid a prolonged trial process. Working with a trusted attorney is the best way to ensure you receive fair treatment and the compensation you deserve.

Wrongful termination by breach of contract is a serious issue that can significantly impact your career and your livelihood. If you find yourself in this difficult situation, taking immediate action and seeking professional legal assistance can help you achieve a favorable outcome. The Mark | Lavigne law firm is here to help. We have extensive experience protecting worker’s rights, including enforcing employment contracts. Browse our extensive blog to learn more about New Jersey employment law.

[1] Wooley v. Hoffmann-La Roche, Inc., 491 A.2d 1257, 1258 (N.J. 1985).

[2] Video Pipeline v. Buena Vista Home Entertainment, Inc. 275 F. Supp. 2d 543 (D.N.J. 2003).