Signing and resigning from your contract: The final word?

By Jay Hammond, ISEA staff counsel

Questions revolving around the issues of signing and resigning from contracts occur annually and have been the subject of much discussion and prior publications.

However, it is "that time of year," and it may be worthwhile to revisit the issues -- especially for those who are new to the profession or those of you who may be considering changing employers for the first time. So, one more time . . . The first question often posed is, "Do I have to sign the contract offered to me by my district for the following year?"

The contract cannot be offered to you before March 15, and, when it is offered, the law requires that it be signed by the board president and "state the annual compensation."

The main issue at this stage is usually whether the contract complies with the statutory requirement that it "state the annual compensation." Districts often try to circumvent this requirement by issuing the contract with the salary designation blank, or use the prior year's salary. Sometimes the district will use the prior year's salary coupled with a note stating that the increase will be added after negotiations are completed. A final variation is a designation that the salary will be whatever is agreed to in negotiations.

None of these alternatives satisfy the clear statutory mandate that the contract "state the annual compensation." If negotiations are holding up the final determination of the salary levels for the following year, the district has no alternative but to wait for negotiations to be finalized and then issue contracts with the correct salary designation. If you receive a contract that does not state the accurate salary for the following year, you should return it with a note that states you will consider the contract when it is issued in accordance with the law, and it contains the proper salary designation.

When a valid contract is issued to you, you have 21 days from the date you receive the contract, to resign if that is your intention. If you resign within that 21-day period, your resignation cannot be challenged. If you sign the contract and return it, you then obviously have a valid and enforceable contract for the following school year.

If you do not sign it, but you also do not submit a resignation within the 21 days, then your current contract automatically renews for the following school year under our continuing contract law. At that point, the contract is enforceable by either party.

If you have signed the contract, or it has renewed under the continuing contract law, and you then decide you want to resign, you cannot do so unilaterally. You must obtain a release from the school district. School districts are not obligated to give you a release and may hold you to the contract.

If you ask to be released, the most common response is that the district will release you on the conditions that they find a suitable replacement and you help pay the costs associated with finding that replacement. Costs districts assess for this process may or may not be valid and you should check with your UniServ office to determine the validity of the charge before paying it.

If you resign without a release from the district you will have potential liability in the form of a court action to recoup any costs the district incurs as a result of your breach of the contract. Those costs could be minimal or substantial depending upon the individual circumstances.

In addition, the district may file a complaint against you with the Board of Educational Examiners if your resignation occurs after June 30. An action before the Board of Educational Examiners could result in a suspension of your teaching license.

Therefore, it is imperative that you take the signing of the contract seriously and always realize that it represents not only job security for you but also assures the district it has met its staffing needs for the following year. If you are unsure of what to do in a given situation, contact your UniServ Director before proceeding.

(taken from the April/May 2007 ISEA Communiqué)