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 employer would have to prove the actual damages.
The Missouri Liquidated Damage Clause in an employment contract is a provision that addresses the consequences of an employee breaching the terms and conditions set forth in the agreement. This clause helps protect the employer's interests by specifying the predetermined amount or method of calculating damages that the breaching employee must pay as compensation for the breach. Having a Liquidated Damage Clause in an employment contract provides clarity and certainty for both parties involved, allowing the employer to understand the potential financial implications resulting from an employee's breach of contract, and the employee to have a clear understanding of the consequences that may arise from such a breach. In Missouri, there are various types of Liquidated Damage Clauses that can be included in an employment contract to address a breach by the employee. These clauses can be categorized as: 1. Fixed Amount Clause: This type of Liquidated Damage Clause stipulates a specific dollar amount that the breaching employee must pay as compensation. For example, the clause may state that the employee must pay a predetermined sum of $5,000 as liquidated damages in the event of a breach. 2. Percentage of Salary Clause: This type of Liquidated Damage Clause calculates the damages based on a certain percentage of the employee's salary. For instance, the clause may state that the breaching employee must pay liquidated damages equal to 10% of their annual salary. 3. Additional Costs Clause: This type of Liquidated Damage Clause allows the employer to recover any additional costs incurred as a result of the employee's breach. These costs can include hiring and training a replacement employee, legal fees, or any other expenses related to the breach. 4. Restitution Clause: This type of Liquidated Damage Clause requires the breaching employee to restore or return any benefits or assets they gained while in violation of the employment contract. This could involve returning company property or assets, disgorging profits obtained from unauthorized activities, or reimbursing the employer for any losses incurred. It is essential for both employers and employees to clearly understand the terms and implications of the Liquidated Damage Clause in an employment contract. Consulting with an attorney who specializes in employment law in Missouri can provide guidance in tailoring the specific language of the clause to best suit the circumstances and needs of both parties involved. Keywords: Missouri, employment contract, liquidated damage clause, breach, employee, fixed amount clause, percentage of salary clause, additional costs' clause, restitution clause, consequences, compensation, damages.
The Missouri Liquidated Damage Clause in an employment contract is a provision that addresses the consequences of an employee breaching the terms and conditions set forth in the agreement. This clause helps protect the employer's interests by specifying the predetermined amount or method of calculating damages that the breaching employee must pay as compensation for the breach. Having a Liquidated Damage Clause in an employment contract provides clarity and certainty for both parties involved, allowing the employer to understand the potential financial implications resulting from an employee's breach of contract, and the employee to have a clear understanding of the consequences that may arise from such a breach. In Missouri, there are various types of Liquidated Damage Clauses that can be included in an employment contract to address a breach by the employee. These clauses can be categorized as: 1. Fixed Amount Clause: This type of Liquidated Damage Clause stipulates a specific dollar amount that the breaching employee must pay as compensation. For example, the clause may state that the employee must pay a predetermined sum of $5,000 as liquidated damages in the event of a breach. 2. Percentage of Salary Clause: This type of Liquidated Damage Clause calculates the damages based on a certain percentage of the employee's salary. For instance, the clause may state that the breaching employee must pay liquidated damages equal to 10% of their annual salary. 3. Additional Costs Clause: This type of Liquidated Damage Clause allows the employer to recover any additional costs incurred as a result of the employee's breach. These costs can include hiring and training a replacement employee, legal fees, or any other expenses related to the breach. 4. Restitution Clause: This type of Liquidated Damage Clause requires the breaching employee to restore or return any benefits or assets they gained while in violation of the employment contract. This could involve returning company property or assets, disgorging profits obtained from unauthorized activities, or reimbursing the employer for any losses incurred. It is essential for both employers and employees to clearly understand the terms and implications of the Liquidated Damage Clause in an employment contract. Consulting with an attorney who specializes in employment law in Missouri can provide guidance in tailoring the specific language of the clause to best suit the circumstances and needs of both parties involved. Keywords: Missouri, employment contract, liquidated damage clause, breach, employee, fixed amount clause, percentage of salary clause, additional costs' clause, restitution clause, consequences, compensation, damages.
