If your boss asked you to sign an employment agreement when you started your job, you may be wondering, “can I quit my job if I signed a contract?” While Ohio is an at-will employment state, you may leave your job at any time. However, if you signed an employment contract, it may include provisions that limit your ability to resign when you wish — and you may face legal consequences for breaching the contract if you violate the terms.

What is an Employment Contract?

An employment contract is a legal agreement between an employee and employer that outlines the terms and conditions of employment. It specifies the rights and obligations of both the employer and employee — as well as the conditions under which an employee may resign.

An employment contract can also include provisions concerning:

• A description of the employee’s job responsibilities
• Details concerning the duration of employment
• Work schedule and break times
• Information about employment benefits
• A notice period for resignation and termination
• Termination conditions
• Severance pay
• The process for dispute resolution

Additionally, an employment contract may include a non-disclosure agreement to safeguard a company’s proprietary information. It can also include a non-compete clause, which would restrict an employee from working for a competitor for a certain amount of time following their departure from the company.

Can an Employment Contract Override Ohio’s At-Will Employment Law?

Under Ohio’s “at-will” employment law, an employee or employer can terminate the employment relationship at any time. However, there are certain considerations if you signed an agreement with your employer. An employment contract can override the at-will employment doctrine by specifying the terms of an employee’s departure. The employment contract may also outline the procedures that you must follow if you will be resigning.

If you’re thinking about quitting your job but signed a contract, it’s crucial to review the terms of any agreement you signed to see whether it defines a fixed term for employment — or specifies a notice period for resignation. Many employment contracts require an employee to provide an employer with two weeks, one month, or even more notice prior to leaving the company. In such cases, your employer may be entitled to take legal action if you fail to provide notice within the time frame specified in the contract.

Before you sign an employment contract, you may want to negotiate a “good reason” clause. This provision outlines the specific circumstances under which an employee can terminate their employment. Events that may constitute ‘good reason’ for resignation can include a demotion, a reduction in compensation, or forced relocation to a work site significantly further from the original location. A “good reason” clause may also provide for severance benefits if you leave due to a material adverse change in your employment situation.

Can an Employer Terminate You if You Signed an Employment Contract?

It’s important to negotiate an employment contract to ensure it is not one-sided, and only in favor of your employer. In addition to protecting an employer’s interests, an employment contract can safeguard an employee’s rights. Significantly, it can limit the employer’s ability to terminate the agreement within the specified employment duration for “just cause” only. This means an employer would need to have a legally valid reason to fire you, otherwise they could be in breach of contract.

“Just cause” to validate an employer’s termination of an employment relationship can include:

• Insubordination or misconduct
• Dishonesty
• Theft or violence
• Poor job performance
• Failure to meet the job requirements

Notably, absent a written employment agreement, an employee handbook or company policy statements may create an implied contract that limits the at-will employment relationship. For example, an employee handbook may outline a specific process for disciplinary actions and imply an employee may only be terminated after certain steps have been followed. An implied contract may also be created if it includes language that may be interpreted as a promise of job security.

What are the Consequences of Breaching an Employment Contract?

Either an employer or employee may face legal consequences for breaching an employment contract. If an employer breaches the contract, the employee may sue them for monetary damages. An employee may be eligible to recover their lost wages, lost benefits, and other monetary losses incurred due to the breach. In some cases, an employee may also be entitled to reinstatement to their position.

In the event an employee breaches the employment contract, an employer may sue to recover the financial losses they incurred in connection with the breach. Recoverable damages can include reimbursement for the expenses incurred in finding a replacement employee and for the new employee’s training costs. If the breach of contract disrupts the company’s operations, an employer may also be able to sue for the lost output.

Contact an Experienced Ohio Employment Law Attorney

If your employer asks you to sign an employment agreement, it’s best to have a knowledgeable employment law attorney by your side who can negotiate the terms to ensure they are fair. Located in Westlake and providing reliable counsel to clients throughout Ohio, the employment law attorneys of Lalak LLC represent employees for a wide range of issues in connection with employment contracts. Contact Lalak LLC today to schedule a free, confidential, no-obligation consultation and learn how we can assist you.