Legal Question in Employment Law in Massachusetts
Is an Offer letter a contract
Just under six months ago my employer recruited me. At that time I was sent an offer letter. It explained that they were offering a base salary plus bonus, 25% of base at 100% of sales plan. Recently they restructured the comp plan. Now they feel that since I have the ability to make more Variable income, they want to cut my base pay. The certainly knew what the comp plan was going to look like when I was hired. Had I been given the current plan as an offer I may not have taken the job. Do I have any recourse?
2 Answers from Attorneys
Re: Is an Offer letter a contract
Yes, you have recourse.
To be a contract there must be (1) an offer, (2) an acceptance, and (3) consideration.
If the offerer changes the offer after execution of the contract or after performance has begun (not all contracts are written), then that is called a modification.
Written contracts generally have a clause that says "All modifications have to be in writing signed by all parties" or whatever it is the parties agreed upon prior to execution or the start of performance.
Given that your offer was in writing, unless your employer gave you a "writing" that the employer could unilaterally make changes -- and you signed receipt of that writing -- I'd argue the employer cannot change the executed
contract unilaterally.
Re: Is an Offer letter a contract
An offer is not a conractt. You have a right to sue for misrepresentation.
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