Court rules that contractual damages cannot be recovered for manner of dismissal losses
In an important decision, the Supreme Court has ruled that an employee cannot bring a breach of contract claim for losses flowing from the manner of dismissal even where the dismissal is in breach of an express contractual disciplinary procedure. The statutory unfair dismissal regime provides for compensation in these circumstances, and the ordinary principles that govern breach of contract damages do not apply. Contractual damages can only be recovered where the breach precedes and is independent of the dismissal process (Edwards v Chesterfield Royal Hospital NHS Foundation Trust; Botham v Ministry of Defence)..
When an employer breaches an employment contract, ordinarily, like with any other contract, the employee can recover damages for losses flowing from that breach. However, in the leading case of Johnson v Unisys, the House of Lords said that contractual claims for breach of the implied term of trust and confidence in the manner of dismissal cannot be brought as Parliament has already provided a statutory remedy for unfair dismissal. This exception from normal breach of contract principles has become known as the Johnson exclusion area…
If you are registered and logged in to the site, click on the link below to read the rest of the Addleshaw Goddard briefing. If not, please register or sign in with your details below.
News from Addleshaw Goddard
News from The Lawyer
Briefings from Addleshaw Goddard
Addleshaw Goddard has released the 16 October 2014 issue of its Data Issues Roundup, which provides a weekly round-up of data issues.
This round-up includes costs and unreasonable refusals to engage in ADR and four recent cases considering the refusal by one party to engage in ADR.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
Could Slater & Gordon achieve its stated aim of becoming a top consumer brand by acquiring Pannone?