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When it comes to employment law, the term “implied contract” refers to an agreement between an employer and employee that is established through actions or behavior rather than a written or verbal contract. An implied contract may also refer to an agreement that is not explicitly stated but is nonetheless understood to exist between both parties.
For example, an employee may be promised job security or a certain level of compensation and benefits, even though these terms are not explicitly outlined in a contract. This promise is implied by the employer`s actions or statements and may be enforceable in court.
There are two types of implied contracts in employment: implied-in-fact contracts and contracts implied by law.
Implied-in-fact contracts are agreements that are inferred from the employer`s conduct or statements. These types of contracts may arise when an employer makes promises of job security, a certain level of compensation, or other benefits. While these promises may not be explicitly written into a contract, they may be accepted by the employee as a binding agreement.
On the other hand, contracts implied by law are legal obligations that are imposed on the employer. These obligations may arise from laws and regulations governing the employer-employee relationship, such as minimum wage laws, anti-discrimination laws, or worker`s compensation laws.
It is important to note that not all employment relationships are subject to implied contracts. For example, at-will employees have no implied contract and can be terminated at any time without cause. However, employees who have signed a written contract may still be subject to implied contracts.
In conclusion, an implied contract in employment is an agreement between an employer and employee that is established through actions or behavior rather than a written or verbal contract. These contracts may arise from promises made by the employer or through legal obligations imposed by law. It is important for employees to understand their rights and obligations under these types of contracts and seek legal advice if necessary.