Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Budget and the Bees
Budget and the Bees
Latrice Perez

6 Verbal Promises from Employers That Have No Legal Standing

Verbal Promises
Image source: 123rf.com

A manager might make encouraging statements during a job interview or performance review. They might praise your work, hint at a bright future, and make what sound like concrete promises. You leave the meeting feeling motivated and secure, trusting their word. The problem is that the law sees most of these conversations as casual encouragement. Without a written, signed agreement, many verbal promises from employers are unenforceable. This leaves you with no recourse when they fail to materialize.

Here are six common verbal promises from a boss that hold no legal weight.

1. The Promise of a Future Promotion or Raise

This is a common verbal promise. A manager might say, “Keep up the great work, and you’re on track for a promotion in six months.” They might also promise a 10% raise at your next review. While this may be their intention, it is not a legally binding contract. Budgets get cut, management changes, and priorities shift. The company has no legal obligation to follow through unless the promise is documented in a formal offer letter or signed contract.

2. The Promise of Job Security (“You’ll always have a job here”)

A boss might tell a long-time employee, “Don’t worry, you’re part of the family. You’ll always have a job here.” This feels reassuring, but it means nothing legally. Most U.S. employment is “at-will.” This means an employer can terminate an employee at any time, for any non-discriminatory reason. A casual verbal assurance of job security does not override this doctrine. You can still be laid off in the next restructuring.

3. The Promise of a Specific Bonus Amount

During a good quarter, a manager might say, “Everyone on the team is getting a $5,000 bonus if we hit our targets.” You and your team work hard and hit the targets. But then the bonuses are smaller than promised or don’t come at all. A verbal promise of a bonus is usually a discretionary statement, not an enforceable wage promise. The company can likely change the terms at any time unless the bonus plan is a formal, written policy with non-discretionary criteria.

4. The Promise to Alter an “At-Will” Employment Status

This is a more subtle but critical trap. You would need a clear, explicit contract stating you can only be fired “for cause” to overcome the at-will presumption. A manager’s verbal statement like, “We only fire people for poor performance here,” does not create such a contract. Courts consistently rule that these general statements are not specific enough. They do not change the at-will nature of your employment. It’s simply a statement of company policy, which can change at any moment.

5. The Promise of Paying Out Unused Vacation or Sick Time

Company policies on paying out unused paid time off (PTO) vary widely. These rules are governed by state law. A manager might verbally promise, “Of course, we’ll pay out your unused vacation days if you leave.” However, the written policy will almost always trump the manager’s verbal assurance. This is true if the official handbook says the company forfeits unused time upon termination.

6. The Promise of Future Equity or Stock Options

Startup founders often use verbal promises of future equity to entice employees. A founder might say, “We’ll grant you 1% of the company stock once we secure funding.” This is a particularly dangerous promise to trust. Equity grants are complex legal transactions. They must be documented in a formal stock option agreement and approved by the board of directors. A verbal promise of future ownership is worth nothing until it is put into a signed legal document.

Get It in Writing, Or It Didn’t Happen

It can feel awkward to question a friendly manager’s word. However, it’s essential for protecting your career and finances. In employment law, the written word is king. If a promise is important to you, you must get it documented. A simple follow-up email confirming your conversation can be a good start. But for significant terms, a formal, signed agreement is the only real protection you have. Don’t learn the hard way that most verbal promises from employers are legally meaningless.

Has a written contract ever saved you in a work situation? We want to hear the story.

Read more:

10 Things You’re Doing That Make Customer Service Workers Hate You

6 Things That Turn You Into the “Difficult One” at Work

The post 6 Verbal Promises from Employers That Have No Legal Standing appeared first on Budget and the Bees.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.