Oral Employment Contract in New York: What You Need to Know

In New York, an oral employment contract can be legally binding, but it comes with certain risks. Unlike a written contract, an oral agreement can be difficult to prove, and it may not include all the terms and conditions that are typically found in a written agreement.

If you are considering entering into an oral employment contract in New York, here are some things you need to know:

1. The basic terms of the agreement should be clear and agreed upon by both parties.

In an oral contract, it is important that all parties agree on the basic terms of the agreement, such as the job duties, compensation, and working hours. If any of these terms are unclear or not agreed upon by both parties, it can lead to disputes down the line.

2. Both parties must have the capacity to enter into a contract.

To be legally binding, a contract must be entered into by parties who have the capacity to do so. This means that both the employer and employee must be of legal age and mental capacity to enter into a contract.

3. The statute of frauds may apply.

In New York, the statute of frauds requires that certain contracts, including contracts for the sale of goods over $500, must be in writing to be enforceable. While this statute does not apply to employment contracts, it is important to be aware of it in case any disputes arise.

4. Verbal agreements can be difficult to prove.

If a dispute arises over the terms of an oral employment contract, it can be difficult to prove the terms of the agreement without a written record. This can lead to disagreements and potentially costly legal battles.

5. Consider a written agreement instead.

While oral employment contracts are legally binding in New York, it is generally recommended that employers use written agreements instead. A written contract can provide more clarity on the terms of the agreement, and can be used as evidence in case of a dispute.

In conclusion, while oral employment contracts are legally binding in New York, they come with certain risks. It is important to ensure that all parties agree on the basic terms of the agreement, and to be aware of the potential difficulties in proving the terms of the agreement if needed. Consider using a written agreement instead to avoid potential disputes down the line.