To effectively address an employment contract breach, it is essential to seek legal advice to understand your position and defend your complaint. But where do you begin?
An employment contract outlines the terms of the relationship between parties, including express terms like salary, working location, and hours, as well as implied clauses like mutual trust and confidence.
Employers must review contract terms carefully to prevent breaches, and employees may be entitled to compensation for non-compliance with agreed terms.
Understanding employee rights UK is crucial for protecting and proving a breach of contract.
Shaw Trust’s £1,500 Payout Highlights Key Issues in Breaching Contracts
The Shaw Trust, assists disabled individuals in obtaining jobs, reported a total revenue of £302 million for the financial year that concluded in August 2023, with £182 million derived from government contracts.
In 2022–2023, it employed 5,268 people and had over 400 volunteers, according to the Charity Commission’s registry.
The Shaw Trust, a welfare-to-work charity, has been ordered by an employment tribunal in Croydon, south London, to pay £1,500 in compensation for a breach to a former employee.
The individual was dismissed without a month’s notice, resulting in a breach of contract and unlawful wage deduction due to lack of notice.
Shaw Trust’s Judgement and Verdict
The judgment made in March stated that the claimant’s complaint about the charity’s inability to make a reasonable adjustment would have been successful if presented in time.
This was related to the charity’s failure to allow the claimant additional time for appointments with customers.
The tribunal did, however, reject additional claims, such as discrimination based on disability and harassment based on race or religion.
A Shaw Trust spokesperson told Civil Society: “We welcome the judgment of the tribunal, which dismissed all claims made.
“The one claim upheld was not contested and relates to an administrative error, which the award made will resolve.”
Proving a Contract Breach: Key Steps and Evidence
Three main components must usually be shown to prove a breach of contract:
Step 1- proving a valid contract exists.
In a breach of contract action, the first step is to establish a legally binding contract, which can be proven through a written document signed by both parties, or through verbal, written, or implicit agreements.
To prove the existence of a contract, your solicitor may:
- Provide evidence showing that an agreement was in place. This may include written agreements, correspondence, or oral agreements if they are legally valid.
- Show that both parties considered the contract.
- Confirm that all parties involved had the legal capacity to enter into the contract.
Step 2- Showing the contract was breached.
After you have proven that there is a legally binding contract, your solicitor will look for evidence that it was broken.
This may involve:
- Reviewing the contract terms to establish each party’s specific obligations and duties.
- Gathering documents, correspondence, and other evidence to establish where a breach occurred. This may include emails, written communications, invoices, receipts, and performance records.
- Clarifying what part of the contract was breached and how.
- Finding witnesses with firsthand knowledge of the contract and the breach and gathering their testimony.
- Bringing in experts with specific technical or industry knowledge to support your case.
Step 3- Demonstrating financial loss.
You must demonstrate that you had a loss as a direct result of the violation in order to successfully pursue damages or other legal remedies. In order to assist you with this, your attorney will:
- Gather evidence to prove that there is a direct link between the breach and the losses incurred, and how the breach was the primary reason for the damages.
- Calculate and provide evidence of the actual financial losses suffered as a result of the breach.
- Where appropriate, show that you made reasonable efforts to mitigate your losses (e.g. seeking an alternative supplier).
Once a breach has been established, your breach of contract solicitor will advise you on your legal options.
Frequently asked questions:
What are the different types of breach of contract in UK employment law?
Contract violations can be categorized into four types, with the type of breach and the parties involved determining the appropriate course of action.
Minor breach of contract: Minor breaches occur when one party fails to fulfil contractual obligations, often unaware, and can be easily remedied. The innocent party can still seek damages.
Material breach of contract: Minor breaches occur when one party fails to fulfil contractual obligations, often unaware, and can be easily remedied. The innocent party can still seek damages.
Fundamental breach of contract: A fundamental breach is a severe violation that prevents an innocent party from receiving promised benefits. Legal advice can terminate the contract and allow the party to seek damages.
Anticipatory breach of contract: An anticipatory breach occurs when a party fails to fulfil their contractual obligations, affecting specific terms or the entire agreement. The innocent party can treat the contract as if it had already been breached.
Employer Breached Your Contract: Know Your Rights Now
A breach of contract can be stressful and disappointing when job terms and conditions are not met, with common examples including:
- Unpaid wages including bonuses/commissions/overtime.
- Being asked to work different hours or shifts to those you had agreed to.
- Not being allowed to take your allocated break times
- Change in your job title/duties.
It is important to raise your concerns informally with your employer first to see if your concerns can be resolved without the involvement of legal support.
However, if discussing your concerns informally does not resolve your issue then you should look to raise your concerns formally.
Breach of Contract Damages
Contract breaches allow for a claim of wrongful dismissal payout to restore the financial position, varying based on breach circumstances and contract terms.
These damages can include:
- General or Compensatory Damages: These compensate the innocent party for any losses resulting from the breach. A claim might include any costs incurred when engaging someone else to fulfil the contract and any loss of profit due to the breach. In the UK, you cannot claim compensation for things such as stress or inconvenience after a breach of contract.
- Punitive or Exemplary Damages: Punitive damages punish defendants whose conduct is considered grossly negligent or intentional. In the UK, punitive damages are not awarded in breach of contract cases.
- Interest: Interest may be added to the damages awarded to compensate the innocent party for the time value of money lost due to the breach.
The damages you can claim will depend on your specific circumstances. Depending on what you want to achieve, we may also seek a court order to force the other side to carry out their contractual obligations.
Further Information:
Shaw Trust ordered to pay £1,500 to former employee for breaching contract.
Breach of Contract and Unlawful Deduction of Wages.
Oakwood Solicitors Employment Terms and Conditions and Breach of Contract.
Breach of Contract: A Legal Guide To Breach of Contract Claims.
WHAT TO DO NEXT
If your employer has breached your contract, do not wait. Contact our legal team for expert advice and fast support.
Get in touch today for a no-obligation consultation. Choose one of the methods on the right-hand side of this page or call us on 0113 323 3651 to find out how we can help you.
Fiona Almazedi has been with Oakwood Solicitors for the last 10 years working as a consultant and taking up the position of Head of Employment on the 3rd January 2024.
Fiona has over 20 years of ex…
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