Take My Word For It: Alex Denny in the Financial Times on the Pitfalls of Verbal Contracts

Alex Denny, leader of Faegre Baker Daniels' London labor and employment group, is experienced in a broad range of employment issues affecting large and small employers. Denny answered a question from the director of a financial consultancy in the August 16, 2014 edition of Financial Times.

The director had concerns about a consultant they had promoted to a senior manager position at the consultancy who had notified the board that he'd be leaving in a month. At the time of his promotion, he was told that the notice period for managers was three months, although there was no new contract drawn up, and his original employment contract stated a one month notice period.

Denny said that the director should look at the original employment contract to see what terms and conditions may apply now that the manager has handed in his notice. Denny noted that disputes over verbal agreements are challenging to pursue legally as there needs to be strong evidence of mutual agreement. He stressed that without contemporaneous evidence such as emails or meeting minutes, the director will find it difficult to enforce the increased notice period.