Verbal agreements at work: What you need to know

Verbal agreements are commonly used in the workplace, but they can be tricky to navigate. Whether you`re negotiating a contract or discussing a project with a colleague, verbal agreements can have legal implications that you need to be aware of. In this article, we`ll cover the basics of verbal agreements and what you need to know to protect yourself and your company.

What is a verbal agreement?

A verbal agreement is an agreement made between two or more parties without a written contract. It is a form of agreement that is based on trust and mutual understanding. Verbal agreements can be made in any circumstance, including in the workplace.

However, verbal agreements can be difficult to enforce because there is no written record of the agreement. If there is a dispute, it can be challenging to prove what was said and agreed upon. This is why it`s crucial to be cautious when entering into a verbal agreement. Always document the terms of the agreement in writing or follow up with an email.

When are verbal agreements used in the workplace?

Verbal agreements are often used in the workplace when time is of the essence, and a written contract is not practical. For example, a client may call with an urgent order, and the terms of the agreement may be discussed over the phone. Or, in a meeting with colleagues, an agreement may be reached on a project`s scope and deadlines without any formal document being drafted.

Verbal agreements can also be used in negotiations, such as salary or benefits discussions with an employer. Although these discussions may be followed up in writing, the initial agreement may be verbal.

What are the risks of verbal agreements?

The risks of verbal agreements are that they can be hard to enforce because there is no written record of the agreement. If one party does not comply with the agreement, it can be challenging to prove what was agreed upon. This can lead to disputes, misunderstandings, and even legal action.

Additionally, verbal agreements can lead to miscommunication or misunderstanding on the terms of the agreement. Without a clear written record, both parties may interpret the agreement differently.

How can you protect yourself in a verbal agreement?

The best way to protect yourself in a verbal agreement is to document the terms of the agreement in writing. Follow up with an email summarizing the agreement, and have all parties confirm the details. This provides a written record of the agreement that can be referred to in case of a dispute.

If the agreement is significant, it`s always best to have a formal written contract drafted. A written contract provides clear terms and conditions and clearly outlines the obligations of each party.

In conclusion, verbal agreements are common in the workplace, but they can be risky. Always document the terms of the agreement in writing or follow up with an email to protect yourself and your company. If the agreement is significant, it`s always best to have a formal written contract drafted. Be cautious when entering into verbal agreements, and if in doubt, seek legal advice.