Implied Contract of Employment

What is an Implied Contract of Employment?

An implied contract of employment is an agreement that is not written down but is understood by both the employer and the employee. It is based on the actions, behaviors, and circumstances surrounding the work relationship. For example, if a photographer consistently works for a client and they pay for the services, there may be an implied contract that the client expects the photographer to continue providing similar work in the future.

How Does an Implied Contract of Employment Work?

Implied contracts can arise from various situations, such as verbal promises or company policies. Here are some key points:

• Verbal Promises: If a manager tells an employee that they will have a job as long as they perform well, this could create an implied contract.
• Employee Handbooks: If a company handbook outlines certain benefits or job security policies, it can imply an expectation of continued employment.
• Behavior and Practices: If employees are treated in a way that suggests job security—like being allowed to work from home consistently—this can imply a contract that their role is secure.

When Can an Implied Contract of Employment Be Challenged?

While implied contracts can provide job security, there are situations where they can be challenged:

• Clear Terms: If the employer has a clear policy stating that employment is "at-will," implying that either party can end the employment for any reason, it may override any implied contract.
• Unwritten Policies: If there are no consistent practices or policies supporting the implied contract, it may not hold up in court.

Examples of Implied Contracts in Creative Fields

For creative entrepreneurs like designers and videographers, implied contracts can often be found in client relationships:

• Repeat Business: If a client keeps coming back for photo shoots or design projects, they may imply that they expect ongoing work and quality service from the creator.
• Feedback and Revisions: If a client routinely asks for revisions without formally discussing payment for extra work, it might imply they expect a certain level of service.

Why Understanding Implied Contracts is Important?

Understanding implied contracts helps both employees and employers to recognize their rights and expectations within a workplace. For creative professionals, knowing how these contracts work can safeguard their relationships with clients and help prevent misunderstandings:

• Clarity: Knowing what is expected can prevent disputes between freelancers and clients.
• Job Security: Understanding implied contracts can give creative professionals confidence in their working relationships.

Overall, grasping the concept of implied contracts of employment can benefit both employees and employers by clarifying expectations and promoting trust in the workplace.