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- Last updated: August 2024
An implied contract in employment is an unwritten agreement that is formed based on the actions, statements, or circumstances between an employer and employee, suggesting that certain terms of employment exist even though they were not explicitly stated. This type of contract can arise when an employer makes promises or assurances about job security, raises, or promotions that the employee reasonably relies upon.
For example, if an employer repeatedly tells an employee that they will have a job as long as they perform well, this could create an implied contract that the employee won’t be fired without just cause. Courts can recognize these implied agreements if there is enough evidence that both parties understood these terms to be part of the employment relationship.
However, proving an implied contract can be challenging, as it often relies on demonstrating consistent behavior or patterns that clearly indicate an agreement. Employment that is “at-will,” meaning the employer can terminate the employee at any time for any reason, generally overrides implied contracts unless there is strong evidence to the contrary.
In summary, an implied contract in employment is an unwritten agreement inferred from the actions and statements of the employer and employee. If you believe you have an implied contract and are facing issues related to it, consulting with an employment attorney can help clarify your rights.
