Liquidated Damage Clause in Employment Contract Addressing Breach by Employer - Legal Business Forms from LaborLawCenter.com

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Liquidated Damage Clause in Employment Contract Addressing Breach by Employer

Liquidated Damage Clause in Employment Contract Addressing Breach by Employer

SKU: RUS-US-01154BG-R1305 |

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An employment contract may state the amount of liquidated damages to be paid if the contract is breached. Upon a party's breach, the other party will recover this amount of damages whether actual damages are more or less than the liquidated amount.

If the agreed-upon liquidated damage amount is unreasonable, the Court will hold the liquidated damage clause to be void as a penalty. If the Court declares the clause to be void, the employee would have to prove the actual damages.

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