Myth Buster - Verbal Contracts are NOT Valid Contracts
This is a fairly common myth, but an important one. Why? Because a verbal employment contract, or one that is only ‘implied’, can be legally binding, meaning you can make a job offer without realising it.
If you make any form of promise relating to the individual’s employment, this refers to an ‘implied’ contract. If you discuss contract details with the individual, such as job duties, work hours, or pay & benefits, then this is an explicit verbal employment contract.
A binding agreement can be formed on the basis of verbal statements or via information from an employee handbook or company policy. This is because a large portion of the details in the handbook will be similar to those found in a written contract.
How to avoid an implied contract
Avoid making specific promises during the interview stage, or in the job offer letter should you choose to hire the individual. Such promises can include things like:-
“We’ll never fire you”
“You’re guaranteed to have a job here for the next 5 years”
But they can also be more subtle:
“Your pay & benefit package will be…”
“When your probationary period finishes…”
The Importance of Words and How We Use Them
We communicate in a variety of different ways - words, actions, signs, silence, body language, - all communication is important to us. Yet it appears to be the spoken and written word that is crucial across so many cultures, the emphasis of both is so much more powerful, especially with the advent of the digital age. Whether through a video message or twitter feed, words can create havoc, despair, dialogue, laughter and start trends. Even though the old adage states that actions are stronger than words, “The pen and the written word wield a great deal of power.”