If my contract guarantees a raise but then the company freezes the raises, is it a breach of contract and can the entire contract be nullified?
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If my contract guarantees a raise but then the company freezes the raises, is it a breach of contract and can the entire contract be nullified?
Asked on January 14, 2016 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
If, as you indicate, your contract guaranteed you a raise and there was no exception or limitation on that which would apply in this case to allow the employer to not grant the raise, then it would appear they are in breach of contract. If that is the case, you could sue them for the raise to which you should be entitled; or possibly, if you are looking to escape you own obligations under the contract, treate the contract as terminated due to their breach. Note, though, that contracts are governed by their plain language; that means that the exact words, etc. used in the contract (what, precisely, it says) is critical. Before taking action, bring the contract to an attorney to review its specific terms with you, to confirm what your rights, and therefore options, are.
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