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Contract disputes can result after employee termination

When companies merge, it is common for roles to change. Individuals who founded one company may end up in a different position within the new company, and there is no guarantee that employment will remain indefinitely. Still, such terms are usually agreed upon in business agreements, but contract disputes could arise.

Colorado readers may be interested in such a dispute currently underway in another state. According to reports, the founder of a computer services company sold his majority interests in the business after a merger took place. He signed a contract for three years of employment as a chief business officer, and under the terms of the contract, his employment could be ended by either the company or himself. However, if the company wished to end his employment, it was to provide at least 30 days' notice before the contract's expiration.

The company did make the decision to end the man's employment and provided a notice 30 days ahead of his termination date. The notice also indicated that the company would provide the man a prorated salary for those 30 days. The man believes that the company breached the terms of the contract because the notice was provided after the contact's expiration. As a result, he believes he is entitled to a full year's salary.

The details of employment contracts are immensely important because an issue with any term could lead to conflict. As this case shows, contract disputes can take place if one party believes that the other did not abide by the terms of a contract. When this type of ordeal arises, it is important that Colorado residents understand their legal options.

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