Representations and warranties of employee: Overview, definition, and example
What are representations and warranties of employee?
Representations and warranties of employee refer to the statements or assurances made by an employee in a contract or agreement regarding their qualifications, background, and ability to perform the job. These representations typically include confirming that the employee has the necessary skills, experience, and legal right to work, and that they are not involved in any conflicts that could affect their ability to fulfill their responsibilities. Warranties are promises made by the employee that these statements are true and can be relied upon by the employer.
Why are representations and warranties of employee important?
Representations and warranties are important because they protect the employer by ensuring that the employee has the necessary qualifications and legal standing to perform the job. By including these provisions in an employment agreement, employers can avoid hiring someone who may later cause legal issues or be unable to meet the job's requirements. These representations also clarify the employee's obligations, providing a basis for recourse if the employee fails to meet the standards or conditions laid out in the contract.
Understanding representations and warranties of employee through an example
Imagine a company hiring a software developer for a critical project. The employment contract may include representations and warranties from the employee, such as confirming that they possess the technical skills required, have no prior legal disputes with former employers, and have the legal right to work in the country. If, after hiring, the employee is found to have misrepresented their qualifications or legal status, the employer may have grounds for terminating the contract based on the warranties provided.
In another example, a company hiring a sales manager might require the employee to represent that they have not signed any non-compete agreement with a previous employer that would prevent them from working in a similar role. The company would rely on this representation to ensure the employee can legally take on the role without potential legal conflicts.
An example of a representations and warranties of employee clause
Here’s how a clause about representations and warranties of employee might appear in a contract:
“The Employee represents and warrants that they have the necessary qualifications, experience, and legal right to perform the duties outlined in this Agreement. The Employee further warrants that they are not bound by any prior employment agreements, non-compete clauses, or legal obligations that would prevent them from fulfilling their duties.”
Conclusion
Representations and warranties of employee are crucial for protecting employers and ensuring that employees meet the qualifications and legal requirements for their job. These provisions help avoid legal issues and conflicts by setting clear expectations and providing the employer with a way to seek recourse if the employee fails to meet their assurances. For businesses, including these clauses in employment contracts ensures that they are hiring qualified, legally eligible candidates who can perform their roles as expected.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.