Breach of Executive Employment

When executives negotiate their employment contract, they frequently seek to maximize payments they would receive in the event of resignation. The circumstances surrounding the resignation must usually constitute a “Good Cause” in order for the executive to receive such payments and/or severance benefits. For example, if there is a change in the executive’s job duties, if the employer transfers the executive to a different employment location, or if the employer fails to pay specified compensation. An increasing body of case law now allows executives to argue that even in an absence of such “Good Cause” provisions or even payment entitlement at all in the employment contract, the employer is still liable for contract damages.

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