The duty of mutual trust and confidence implies a duty on the part of both employer and employee not to act in such a way that’s likely to seriously damage, or destroy, the relationship of trust and confidence between the parties. In the context of implied terms, these include the duty of mutual trust and confidence, the duty of fidelity and the duty of confidentiality that arise by operation of common law. Resigning and going to work for a competitor, or setting up business in direct competition with the employer, contrary to the scope of any post-termination restrictions.A failure to provide adequate notice on resignation, contrary to express contractual provision to work a prescribed number of weeks or months having resigned.A failure to carry out the duties for which they were employed to do, contrary to their job title, job role and daily responsibilities as part of that role.This can again include breach of either an express term or a term arising by implication in the context of the employment relationship.Įxamples of employee breaches of contractĬommon examples of express breach of contract by an employee include: This is called employee breach of contract. For example, a failure to pay the employee pay in lieu of notice on termination, or to follow its own dismissal procedures, can constitute an express breach of contract, whilst a failure to prevent an employee from being bullied or harassed at work could amount to a breach of the implied duty of mutual trust and confidence.Įqually, in the same way that an employer can be found to be in breach of contract, the employee can also be in breach of the terms and conditions by which they’re contractually bound. This means that the employment contract can be breached, or broken, by either party to that contract: the employer or the employee.Īn employer breach of contract is where the employer has failed to meet its duties under the employment contract, either express or implied. We also examine the procedure to be followed when bringing employment to an end and dismissing an employee for a fundamental breach of contract.Ī contract of employment is a legally binding agreement, setting out the terms and conditions governing the working relationship between the employer and employee, including their respective rights and responsibilities. It’s important for both parties to understand the reciprocal nature of the employment contract, including their respective rights and remedies in the event the other party breaches terms of the agreement.īelow we look at the circumstances in which employee breaches of contract can commonly arise, and the action an employer can take in response. When an employer and employee enter into a contract of employment, the onus is often assumed to be only on the employer to meet various contractual and statutory obligations - but a contract is two-way.

Define breach of contract