How to Get Out of an Employment Contract

So you have signed an employment contract and suddenly problems arise. Perhaps the problems are personal; maybe the problems are with the employer. If you are wondering whether you're stuck in this contract, the answer is no---but getting out can be tricky.

Speak with your employer and attempt to mutually rescind the contract. Rescission of a contract discharges any duties left to be done. Just as you were free to enter into the contract, you are free to attempt to work with the other party---in this case the employer---to mutually rescind the contract.

Delegate your duties to another qualified person and assign your right to receive payment to that person. A delegation is possible if the work you are under contract for does not involve your specific experience or expertise. If it is a general employment contract and the work can be done by any qualified person, you may be able to delegate the work to someone else. If you do so, you should also assign your right to receive payment from the employer to the new person.

Seek a novation. If you are able to delegate your duties under the contract, seek to have yourself properly removed from the contract. The process is called a novation. To execute a proper novation, you must have both parties (the employer and the new person doing the job) agree to remove you from the contract. Failure to do so could result in your being liable to the employer if the new person fails to complete the work.

Seek legal advice from an attorney. Everyone's legal business is different and requires a complete rundown of the facts and circumstances. Only those trained in the law can provide the necessary and proper advice you need.

Tips & Warnings

This article contains general principles of law for educational purposes only. Do not rely on this article for your legal needs. Seek an attorney for advice in legal matters.