What are the ramifications if Ibreak an employment contract?

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What are the ramifications if Ibreak an employment contract?

I signed an agreement with a company to start work.  However, I have not started work nor received any type of compensation. I have now changed my mind and want to know the legal ramifications.

Asked on July 8, 2011 under Employment Labor Law, Ohio

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Well, the important issues are embedded in the contract itself. You need to read the conditions of the employment contract to determine if you only have certain liabilities if you begin to work for the company and then leave (either for a competitor or to work for yourself). At the end of the day, if you have not started to work yet and received no compensation, you probably won't be liable for anything. The employer cannot force you to work for the company. If you were going to be a salaried employee and usually in an executive position, the employment contract is signed so that you don't immediately move to a competitor and use what you have learned against the company. On the flip side, such contracts also offer you a certain length of guaranteed employment and benefits (like severance pay, bonuses and the like). So, re-read the contract and do not begin work until you have made your final decision based on the contents of the contract.


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