Employer’s breach of the contract.
When talking about ‘breach of contract’, there is often much emphasis placed on what the employee can do wrong that can cause a breach, and thereby a dismissal. However, the employer must also be aware that the breach can occur through his or her actions, or inaction, too.
When the breach is committed by the employer, there are two avenues open to the employee:
- accept the breach and move on;
- do not accept the breach and resign.
If an employee accepts a breach made by the employer and also continues to work for him/her, there are still further courses of action that may ensue. The employee is entitled to pursue compensation from the employer. In such circumstances, the employee is likely to seek either advice and help from a solicitor and/or union. It is advisable that the employer also calls on the services of a solicitor if the compensation route is pursued.
An employer can breach an employment contract in a number of ways:
- failure to pay wages or salary;
- failure to pay the agreed level of wages or salary;
- Harassment of an employee;
- Bullying;
- Bringing false misconduct allegations;
- Altering terms of employment;
- Making a major change to the location of an employee’s place of work, without giving due notice.
Employees late for work?
Employers may not necessarily pay for time that employees are not at work. However, the employer must take care not to impose penalties on top. If there is nothing written into an employee’s contract allowing the employer to do so, the money earned by an employee must be paid. The employer should then decide whether it is worthwhile sueing the employee for any money lost because of someone turning up for work late.
Employers paying late.
If an employer does not pay at the agreed time, it will frequently be deemed as a breach of contract. If the employee can prove he/she suffered a financial loss for not having enough money in the bank (for example), then this could be claimed back. Regular late payments can lead to a court injunction to stop repeat of the breach.
Wrongful dismissal.
Wrongful dismissal is a breach of contract referring to how someone is dismissed from employment. It can often occur through not following procedures as laid down in a contract or statute. An employee can take action in the same way as he/she would for any other breach of contract.
Withdrawing a job offer
It can be deemed as a breach of contract if a job offer is withdrawn. A legal and binding contract is made as soon as one of the parties accepts the offer. From this point, both sides are bound by the terms. This contract is in force until the point where it is legally terminated.
Legal action.
If your employee decides to take action against you for a breach of contract, it can cost very dearly. At an employment tribunal, some experts claim that success and failure are split fifty-fifty. It can sometimes be very arbitrary which way the case will go. So think very carefully and try and resolve the matter before it goes that far.
Remember that your employee will only get compensation or damages if he/she can prove that there has been a real financial loss. A good example of this would be if an employer does not pay the agreed wages. There is also no compensation for distress or hurt feelings.
Employees should remember that taking an employer to a tribunal might prompt a counter-claim to be made.
Another problem facing employers in such cases, is that a breach can mean that a trade union becomes involved, if the aggrieved is a member. Always try and consult with the representative before making any hasty decisions. Trade Unions are there to help represent employees, but they also are there to make sure business works well, in order that there are jobs for their members. Therefore, a trade union is more interested in nurturing good relationships than you may realise.
If you need to get help over a breach of contract, talk to one of our solicitors.
