Legal Question in Employment Law in New Jersey
Breach of oral contract vs at will termination
I was contacted by a partner in a local title co. & offered a position as operations mgr for them. I had been working with another co. for over 8 yrs and was not looking for a new position. The job was interesting, but I was concerned about security if I took it. I accepted the position with the firm stipulation that I must be guaranteed a 2yr contract. I was verbally assured throughout the interview process that this would be so. My contract indicated that at the inception of my 2nd yr my salary & allowances would increase. I believed that was my guarantee. After I began my employment, I was given the employee handbook & noticed the at will termination clause, but was again lead to believe that my 2 yr contract would hold and to sign the acknowlegement and receipt letter for the handbook. I was laid off on 1/29/08, 6mos 13 days before my 2yrs were complete. Do I have grounds to receive my full 2 yr salary compensation from them for breach of an oral aggreement or am I bound by the at will clause?
2 Answers from Attorneys
Re: Breach of oral contract vs at will termination
You write:
"My contract indicated that at the inception of my 2nd yr my salary & allowances would increase. I believed that was my guarantee." This seems to indicate that you received a contract, is that true? Did you get a written contract? Even if you did not get a written agreement, an oral contract can be binding under certain circumstances. The best thing would be for you to contact me at 908.301.9095.
Re: Breach of oral contract vs at will termination
This is one of those situations where it would have been far better for you to ask your lawyer before you took the job. That is because, as a general rule, contracts which are incapable of being fully performed within one year (such as this one) require some written evidence in order to be enforceable. That does not mean that the whole contract must be in writing, but there has to be some writing from the person to be held responsible that would give a court a reason to believe that the contract existed.
So, search your records for something from your employer that could be used as written evidence of the contract. If you find something, you may have an enforceable contract regardless of what the handbook says.
My firm handles matters of this type. If I can be of further help to you, call or email.
See also: http://info.corbettlaw.net/lawguru.htm
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