Implied Employment Contract

An employment contract between an employer and employee that is not written or even verbal, but rather “implied” from the circumstances of the worker’s position. There are many factors that may prove that a worker has created an “implied” contract, including: 1) long term employment (the longer the worker is on the job, the better his claim), 2) promises of future employment (such as “as long as you do a good job, you can expect to keep your job”), 3) good performance reviews, 4) promotions, and 5) policies or employee manuals that state that the worker will be given “progressive discipline” (such as a letter of warning, followed by a suspension, etc.) rather than immediate discharge if the worker has problems at work.

If the worker is deemed an employee (rather then an independent contractor) the employer will be held liable for back employment taxes and even benifits.

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