Employment contract disputes arise when terms are violated

Many companies do not want to lose clients and revenue when an employee leaves the company. As a result, many employers utilize noncompete agreements to prevent former workers from working as a competitor to the business for a certain amount of time. Of course, failing to adhere to these terms could lead to employment contract disputes.

Texas residents may be interested in such a dispute that recently cost a former employee his retirement benefits. Reports stated that the man had signed a new employment contract in 2005 that included a noncompete agreement after a previous agreement was not enforced when another worker went to work for a competitor. The man involved in this recent case retired in 2014 after having worked for the accounting company for over three decades and was set to obtain millions in retirement benefits.

After the man retired, he apparently began providing services for former clients of the company where he worked. Upon finding out this information, the company filed a lawsuit against the man for breach of contract in 2015. Recently, a judge ruled against the man and believed that he had violated the agreement, which resulted in the man losing his retirement benefits provided by the company.

Employment contract disputes can have major outcomes on either side. Of course, companies put these agreements in place in order to protect their interests, and when the terms are violated, they have the right to take legal action. If Texas business owners feel that they have reason to file a lawsuit for breach of contract, they may wish to consult with their legal counsel.