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Employment Contract Dispute: Common Issues, Resolution Steps

This page explains what an employment contract dispute is, common issues, how to resolve it, and when to contact a lawyer from ContractsCounsel for help.

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Clashing with your employer can be a stressful experience, especially if it starts to negatively impact your work prospects. While a dispute with your employer can feel overwhelming, it doesn’t have to land you in court.

There are ways to avoid litigation and resolve the conflict. Read the rest of this article to explore common types of employment contract disputes, how to deal with them, how to prevent them, and why hiring a lawyer can help.

What are Common Employment Contract Disputes?

Conflict between employers and employees can have various causes. The most common usually include:

  • IP. Parties might argue over intellectual property, such as trademark usage.
  • Termination. There could be conflict over ending the contract, such as wrongful termination.
  • Non-compete clauses. Parties might clash over these clauses, which restrict the employee by specifying that they can’t work in a certain area or for competitors.
  • Compensation. This includes disagreements over compensation amounts and nonpayment.

These issues might be referred to or described in the employment contract, but they might be vague or confusing, which can escalate tensions between parties.

What Should You Do During an Employment Contract Dispute?

When you find yourself in an employment contract dispute, you need to act promptly so that you prevent it from getting worse. Here are the most important things to do.

Review Your Employment Contract

Since there could be key terms and clauses in your employment contract that are causing disagreements, such as non-compete clauses, you’ll want to carefully review this document. Check for your duties and rights, and if the other party is violating any terms. This will serve as proof should you contact a lawyer for assistance.

Collect Other Documents

You should also gather other important documents that support your case, such as emails between you and the other party. This is especially important if you’ve contacted them to deal with the dispute but they haven’t helped you to resolve it.

Get Assistance in Writing

Before you escalate your query or issue, you should try to communicate directly with the other party, such as your employer. Send them an email or letter that describes the issue you’re facing. Refer to the employment document so that you support your case. This will also help the other party to understand your position.

If they suggest a conversation, try to make it productive and worthwhile.

  • Focus on your goals. What do you both hope to achieve during the meeting? It’s good to concentrate on this so that the dispute doesn’t become emotionally heated or one-sided.
  • Discuss alternatives. You should be willing to compromise and negotiate.
  • Be empathetic. Listen to the other party to understand their perspective. In many cases, disputes arise from misunderstandings.

Check the Contract’s Dispute-Resolution Method

It’s common for employment contracts to contain clauses about how to resolve disputes. These usually include meditation and arbitration.

  • Meditation involves hiring a third party to facilitate communication between you and the other party. They’ll listen to both of your concerns and assist you to reach a favorable solution or agreement.
  • Arbitration is more formal. It involves an arbitrator, who will listen to your concerns and review your evidence. They’ll then deliver a final, often legally-binding decision to resolve the dispute.

Renegotiating the Contract

If you and the other party are arguing because the employment contract is vague, misleading, or outdated, a positive solution is to renegotiate it. Both parties can change terms and clauses so that they are clear, updated, and legally sound.

You can hire a lawyer on ContractsCounsel to review your employment contract. Post a project on the platform for free and you’ll receive bids from vetted lawyers who have years of experience in drafting and reviewing contracts.

How Can You Prevent Disputes due to Employment Contracts?

By having a solid employment contract from the start of your working relationship, you can prevent disputes from arising.

Avoid Generic Terms

The contract’s terms and clauses should be specific and detailed so that both parties understand their rights and duties without any misinterpretations.

For example, if the employment contract states that the employer won’t pay for unsatisfactory work, there should be an explanation or description about what exactly constitutes unsatisfactory work.

Include Dispute-Resolution Methods

Every contract should contain methods to deal with disputes that arise, such as negotiation, arbitration, and mediation. This helps both parties to know what to do in the event of a disagreement.

Job Role and Duties

Parties might disagree over what’s expected of employees, so the employment contract should include clear job duties, such as by stating the employee’s job title, a description of their duties, and what performance reviews they will have to undergo.

Compensation and Benefits

How much the employee will earn for their job should be clearly specified, as well as how they’ll be compensated for bonuses, commission, and other payments.

It’s also important to state if the employee will gain any benefits from the employer, such as health insurance and retirement contributions, or if they are listed as an independent contractor.

Why Should You Hire a Lawyer for an Employment Contract?

While you might be able to resolve a small dispute with your employer or employee, such as if there’s a misunderstanding, you might need the assistance of a lawyer to help you through the process.

Here are common advantages of hiring an employment contract lawyer from ContractsCounsel.

  • They’ll help you review your contracts. Since contracts can be confusing or vague, a lawyer will explain terms to you while assessing how valid your claim is in the dispute.
  • They’ll help you negotiate with the other party. They’ll use their skill and expertise to get you a favorable outcome, such as a settlement.
  • They’ll help you gather evidence to support your case.
  • They’ll choose the best method for resolving the dispute, based on your specific situation.
  • They’ll represent you in court, if required.

Do you need to hire an employment contract lawyer?

Hire a lawyer on ContractsCounsel. They’ll help you through every step of the employment contract dispute process, prioritizing your rights and helping you to achieve a favorable outcome.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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