Both written words and oral promises must be chosen carefully to avoid creating either actual or implied employment contracts during the hiring process. Employee lawsuits can erupt when managers make promises in an interview that can't be kept, create job offer letters that leave no room for flexibility, or inadvertently oversell the potential for monetary rewards creating an implied employment contract.
FAQs about employment contracts
1. Can a job-offer letter constitute an implied contract?
Companies have been sued on the grounds that the terms outlined in a job-offer letter constitute an implied contract. Therefore, before sending out your next job-offer letter, safeguard yourself by consulting the following.
Lay out the essential terms of your employment relationship with a prospective employee.
Make sure it contains language to the effect that "no other promises or representations have been made."
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