Employment contracts are legal agreements between employers and employees that specify the terms and conditions of employment. A signed employment contract is a legally binding document that can be used to settle disputes in case of breach of contract. However, what happens when an employment contract is not signed? In this article, we will discuss the legality of unsigned employment contracts.
Are unsigned employment contracts enforceable?
The simple answer is yes, unsigned employment contracts are enforceable under certain circumstances. An unsigned employment contract can still be considered a valid agreement if both parties have acted as if they agreed to its terms. This is known as “implied acceptance.”
1. Implied acceptance
Implied acceptance occurs when the employee starts working and the employer pays them according to the terms specified in the unsigned employment contract. By doing so, both parties have implicitly accepted the terms of the contract, even though it was not signed.
2. Oral contracts
In some cases, an employment contract may be oral rather than written. Although oral contracts are more difficult to prove, they are still legally binding. If the terms of the employment agreement can be proven through witnesses or other evidence, then the employer and employee are bound by those terms.
3. Offer letters and company policies
Even if there is no formal employment contract, offer letters and company policies can contain terms and conditions of employment that are legally binding. For example, an offer letter may state the start date, salary, and job title, which may be essential terms of the employment agreement.
Risks of using unsigned employment contracts
While it may be possible to enforce an unsigned employment contract, there are risks associated with doing so. These include:
1. Uncertainty
The lack of a signed employment contract can create uncertainty for both parties. It may be unclear what the terms of the agreement are, leading to disputes and disagreements later on.
2. Difficulties in proving the terms of the agreement
Without a signed employment contract, it may be difficult to prove the terms of the agreement. This can make it challenging to resolve disputes and make it harder for either party to enforce their rights.
3. Legal challenges
An unsigned employment contract may be challenged legally, particularly if there is no clear evidence of implied acceptance or the terms of the agreement are disputed.
How to avoid issues with unsigned employment contracts
To avoid potential issues with unsigned employment contracts, employers should take steps to ensure that all employment agreements are signed before the employee starts working. Some ways to do this include:
1. Providing clear documents
Employers should provide clear and concise employment contracts that specify the terms and conditions of employment. The document should be written in plain English and be easy to understand.
2. Giving sufficient time for review
Employees should be given enough time to review and consider the terms of the employment contract before signing it.
3. Use electronic signatures
Electronic signatures are now widely accepted as legally binding, making it easier for employers to obtain signed employment contracts quickly and efficiently.
Conclusion
Unsigned employment contracts can still be legally binding under certain circumstances. However, there are risks associated with using them, including uncertainty and difficulties in proving the terms of the agreement. To avoid these issues, employers should take steps to ensure that all employment agreements are signed before the employee starts working. By doing so, both parties can have a clear understanding of the terms and conditions of employment, reducing the risk of disputes and legal challenges.