Is an offer letter considered a contract?
I have an Amendment to Offer of Employment, signed by a Human Resources Manager that reads, in part, "Based on the employment negotiations for your position, you have been credited with nine years of prior work experience to be credited toward your vacation eligibility. This makes you eligible for three weeks of vacation as a new employee. This prior experience will continue to be used for vacation accrual, and you will be eligible for four weeks of vacation after completing six years with Company X, Division A - the same amount of vacation given to employees with 15 years experience."
Company X has reorganized, and I now work for Company X, Division Z. My employer now tells me that I am no longer entitled to this vacation benefit. There reasoning is that they are not honoring any negotiated vacation benefits from the Legacy Division A. They have made exceptions in some cases, but not mine.
Can they do this? Is the Amendment to Offer Letter I have considered a contract?
Answers (1)
A complette answer to your question would require an examination of a number of factors: Did you have an underlying or preexisting contract for a definite term? Or were you subject to being let go anytime because you were an at-will employee?
Generally speaking, unless you are being discriminated against in violation of state or federal law or you have specific rights from an actual contract, an employer can change its policies or practices whenever it pleases. In North Carolina, an employer cannot change its benefits retroactively. Once you have earned a benefit, it cannot be taken away from you, at least, not legally. Thus, if you had already worked there 6 years, then you might have a basis to say that you should get the fourth week of vacation this year. If they want to cut you back to 3 weeks thereafter then that might be okay.
As to whether an offer letter is a contract, that question is more complicated.
posted by Reagan Weaver | Apr 16, 2003 12:56 PM [EST]
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