Why an offer letter in Pennsylvania isn’t a contract

On Behalf of | Oct 30, 2020 | Employment Law -- Employer |

A court has ruled that a company didn’t commit a breach of contract by firing an employee less than a year after he was hired. According to the former employee, the company gave him an offer letter that said the company “anticipated” employing him for at least five years. When he was fired, he filed a lawsuit against the company. The case was dismissed by a federal district court; when the man appealed the decision, the dismissal was upheld.

According to Pennsylvania employment law, a company can terminate an employee at any time. Additionally, the judge said that the offer letter did not guarantee the employee a position at the company. Instead, it expressed the company’s wish that the employee would maintain a position there for at least five years. As a result, the judge ruled that the company did not commit a breach of contract.

Many companies make offer letters when they’re interested in hiring an applicant for the position. The offer letter may contain information about the salary, start date and more. However, an offer letter is not the same thing as a contract. According to experts, companies should be careful when writing offer letters so that they don’t make any guarantees to the employee. If they do, they might be held liable in court.

How can business owners protect themselves from lawsuits?

Businesses can be sued for a number of reasons, including breach of contract, discrimination, sexual harassment, wrongful termination, retaliation and health insurance disputes. An attorney may be able to help you protect your business.

Your attorney may review the prosecution’s case and determine whether you committed any wrongdoing. They might help you prepare a defense so that you can protect your business and your employees.