Can It Be Legal to Perform Tasks without a Written Agreement?
In the world of employment, the traditional belief that a written contract is the only valid form of agreement may not always hold true. A verbal agreement can serve as a binding employment contract under certain conditions, as long as it includes the key elements of an offer, acceptance, consideration, intention to be legally bound, and the capacity of parties to contract.
However, relying solely on verbal agreements can present challenges, particularly when it comes to enforcing them in court. Courts may find it difficult to verify the exact terms of a verbal agreement, leading to disputes that can be challenging to resolve.
In many jurisdictions, employment is often considered 'at-will,' meaning either the employee or employer can terminate the relationship at any time for any legal reason. This reduces the practical binding effect of verbal job offers in some contexts.
For employees who work without a written contract, asserting their rights can be problematic. While the lack of a written agreement does not negate the employee’s rights, proving the terms of their employment, hours worked, or agreed pay without written documentation or other evidence can be difficult.
Despite these challenges, employment law protections such as minimum wage laws, anti-discrimination, and workplace safety still apply. Courts may also recognize implied contracts based on conduct, creating enforceable obligations between employer and employee.
The best practice for both parties is to have a written employment contract that clearly outlines terms such as job role, pay, hours, leave entitlements, and other workplace expectations. This reduces disputes and provides a clear legal framework should any disagreements arise.
It is essential to note that the Evidence Act, a source of information about employment contracts, does not necessitate a written record of essential employment conditions to be signed by both parties. However, it does require employers to record essential conditions of an employment relationship and provide it to the employee.
In summary, while verbal agreements can be valid employment contracts, relying solely on them poses significant legal and practical risks for both employees and employers. Written contracts are strongly recommended to ensure clarity, enforceability, and protection of rights for both parties.
Johannes Schipp, a specialist employment lawyer and a member of the German Bar Association (DAV), previously served as the chairman of the executive committee of the employment law working group in the DAV. Based in Gütersloh, Schipp provides legal advice on various employment-related matters.
This article does not provide information about the job application process or the occupation of Johannes Schipp. The Evidence Act applies to more information about the employment relationship, including but not limited to vacation, remuneration, working hours, protection against dismissal, and other regulations relevant to the employment relationship.
In light of the challenges in enforcing verbal agreements and the importance of proving employment terms, it's advisable for both employees and employers to prioritize vocational training and education that fosters an understanding of community policy regarding health-and-wellness, workplace-wellness, and work practices. This knowledge can help in interpreting and adhering to the essential conditions of an employment relationship, as outlined by the Evidence Act. In addition, having a written employment contract can offer clear benefits, such as reducing disputes and providing a solid legal foundation for both parties.
