Breach of contract
In MacPherson v London Borough of Lambeth [1988] IRLR 470 HC, the High Court held that the refusal of the employees to operate new equipment was in breach of their contracts and the employees were not entitled to an interlocutory order directing the council to pay arrears of salary.
In Rigby v Ferodo Ltd the House of Lords confirms that employees whose wages are reduced without their consent are entitled to claim the full amount of their continuing loss, and are not limited to a claim for the loss suffered during their notice period.
In Norbrook Laboratories Ltd v Smyth the High Court in Northern Ireland holds that a restrictive covenant which was signed by an employee in the course of employment was binding in law. The court further holds that the confidentiality clause should not be regarded as void for being In restraint of trade even though the restriction was world-wide and was to last for one year alter the employment ended.
Guided by ordinary contractual principles, the Northern Ireland High Court in Robert McDowell Gill and ors v Cape Contractors Ltd rules that the plaintiffs, who had given up secure employment to work for a new employer, were entitled to compensation when the new employer was subsequently unable to take them on. The court found that the employer's promise gave rise to a collateral contract between the parties which was enforceable by the plaintiffs.
In Faccenda Chicken Ltd v Fowler and others the Court of Appeal upholds the High Court's ruling that, in the absence of a restrictive covenant, a company's former employees were free to make use of their knowledge of that company's customers and pricing structure while working for a competitor, thereby enabling them to solicit trade from their former employer's customers.
The introduction of new technology raises issues of working practices and contractual rights. In Cresswell and others v Board of Inland Revenue, the High Court holds that the computerisation of PAYE did not change the contracts of Inland Revenue staff.
In Strathclyde Regional Council v Neil [1984] IRLR 11 CS, the Sheriff Court held that a contractual provision for repayment by the employee of the costs incurred is not a penalty and can be enforced, provided the amount relates to the loss suffered by the employer.
In Jones v Associated Tunnelling Co Ltd [1981] IRLR 477 EAT, the EAT held that it would be unreasonable for an employee to be deemed by his or her silence to have accepted a change to his or her working conditions when the change had no immediate effect.
In Ahmad v Inner London Education Authority [1977] ICR 490 CA, the Court of Appeal held that the right to freedom of thought, conscience and religion established by Article 9 of the European Convention on Human Rights does not entitle an employee to be absent from work for the purpose of religious worship in breach of contract.
In Dunk v George Waller and Son [1970] 2 All ER 630 CA, the Court of Appeal held that the purpose of an apprenticeship agreement is for the apprentice to receive training in order to obtain better employment, and if the employer terminates the agreement and deprives the apprentice of the training, the apprentice is entitled to earnings under the agreement for the remainder of the apprenticeship and damages for future loss of earnings and prospects.
HR and legal information and guidance relating to breach of contract.