Breach of Contract

A contract of employment is a legal agreement which comes into being when you agree to work for an employer in return for pay.

There are two types of terms within the contract - express and implied. Express terms are those which are expressed orally or actually written into the contract, some of which your employer is legally obliged to include within a 'written statement of particulars’, such as job title, rate of pay, holiday entitlement and pension schemes. You are entitled to this statement of particulars within 8 weeks of starting your employment.

Implied terms refer to those that are too obvious to mention or those which both you and your employer would assume to be incorporated into the contract, for example statutory rights such as equal pay, minimum wage, statutory sick pay and freedom from discrimination on the grounds of sex, race or disability. There is also an implied term of trust and confidence which applies to both you and your employer.

If your employer breaks either the express or implied terms of a contract of employment or any other contract connected with your employment then a breach of contract occurs. If you suffer a loss as a result of any such breach, you may make a claim for breach of contract either in the employment tribunal or in the civil court.

An employment tribunal can only hear a breach of contract claim if the claim arises or is outstanding on the termination of your employment, and there are other restrictions such as the claim cannot relate to personal injury or a restrictive covenant. If you resign as a result of the breach of contract, you may also have a claim for constructive dismissal.

The tribunal may award you damages of up to £25,000 for your loss, for example an agreed bonus, or pay in lieu of notice. If you wish to claim more, you must go straight to the civil court – you cannot make an initial claim for part of the compensation from an employment tribunal and then go on to seek the balance from another court.

Your employer may make a counter-claim to the tribunal if they suffer a loss through the your failure to observe the terms of your contract of employment, but they can only do this if you have already presented a tribunal claim and not since withdrawn or settled it and they cannot initiate a claim against you in the employment tribunal. If you subsequently withdraw your breach of contract claim, your employer’s counter-claim can still be considered by the employment tribunal.

You have three months after the date of your termination of employment to bring a breach of contract claim to an employment tribunal, regardless of whether or not you have pursued an internal grievance or appeals procedure.

If you believe that your employer is in breach of your employment contract, or you simply want more information about your rights, Ashby Cohen can help you. We specialise in employment law cases, and our years of experience as employment lawyers make us uniquely qualified to assist you with any breach of contract issues you may have. Please contact us for an initial free consultation.

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