A legally binding agreement between an employer and employee may arise not from a formally signed document, but from actions, policies, and practices within the workplace. For example, an employer’s consistent promotion practices or assurances of continued employment could form the basis of such an unwritten agreement. These informal arrangements, often inferred from the conduct of both parties, establish certain rights and obligations related to the employment relationship, including termination procedures and expected benefits.
Such agreements offer significant protections for employees, providing a degree of job security and recourse against unfair dismissal even in the absence of a formal contract. Historically, these arrangements have played a crucial role in balancing power dynamics within the workplace, ensuring fair treatment and predictable standards. Understanding the nuances of these informal agreements is vital for both employers and employees to navigate workplace relationships effectively and avoid potential legal disputes.
