Employment Agreement is Void: What Does it Mean?
When an employment agreement is declared void, it means that the contract has no legal effect. This can happen for a variety of reasons, including if the contract was entered into under duress, if it violates labor laws or if one of the parties did not have the legal capacity to enter into the agreement.
Void versus Voidable
It`s important to understand the difference between void and voidable contracts. A void contract is one that is not legal from the beginning. It cannot be enforced by either party and has no legal effect. A voidable contract, on the other hand, is one that is enforceable, but only until one of the parties chooses to void it. For example, if a person signs a contract while under the influence of drugs or alcohol, that contract may be voidable if that person later decides they were not able to make a sound decision at the time of signing.
Common Reasons for Voiding an Employment Agreement
One of the most common reasons for voiding an employment agreement is if it violates labor laws. For example, an employer may not legally be able to enter into an agreement that pays less than minimum wage, requires excessive hours or does not provide necessary benefits. If an employee signs such an agreement and later challenges it in court, the agreement may be deemed void.
Another reason an employment agreement may be declared void is if it was entered into under duress. If an employer forces an employee to sign an agreement by threatening their job or physical safety, the agreement may not be legally enforceable.
Finally, an employment agreement may be void if one of the parties did not have the legal capacity to enter into the agreement. For example, if an employer enters into an agreement with a minor, the agreement may be declared void.
What to Do if Your Employment Agreement is Void
If you believe your employment agreement is void, you should consult an attorney immediately. An attorney experienced in employment law can help you determine if your agreement was entered into legally and what your options are if it was not. You may be entitled to compensation or other legal remedies if your employer has acted illegally.
In conclusion, an employment agreement that is declared void has no legal effect. This can happen for a variety of reasons, including if it violates labor laws, if it was entered into under duress or if one of the parties did not have the legal capacity to enter into the agreement. If you believe your employment agreement is void, consult an attorney experienced in employment law for guidance on what to do next.