Is an oral employment agreement valid in Texas? It depends. Most employment contracts are committed to written form, but some employers and employees agree to employment terms during a face-to-face meeting. These “handshake” deals can be problematic if one party fails to fully perform its obligations.
Just as with a written contract, a party can sue to collect damages for the other party’s breach of an oral agreement. But proving the agreement’s existence can be difficult and may result in a “he said/she said” situation. A witness to the parties’ discussion who can confirm the agreement’s terms and/or evidence of partial performance can help a plaintiff overcome this hurdle.
But Texas law does require certain agreements to be in writing and signed by the party to be charged with the promise. This rule applies to an employment agreement which is not to be performed within one year from the date the parties entered into it. For example, a court could not award damages for an employer’s alleged breach of a verbal contract to employ an individual for three years because such an agreement, by its specific terms, could not be performed within one year.
To speak with an employment law attorney about an employment contract, please contact the employment lawyers at Clouse Dunn Khoshbin LLP at info@cdklawyers.com.