In Brown & Anor v Neon Management Ltd & Anor, Brown and Bhoma resigned on 16 March 2018 as a result of an alleged repudiatory breach of contract, including failing to pay salary increases/discretionary bonuses and trying to introduce new detrimental contractual terms. Brown gave 12 months’ notice and Bhoma gave 6 months’ notice, with both indicating they would be working out the entirety of their notice periods. On 16 May 2018, both employees resigned with immediate effect in response to another alleged repudiatory breach, i.e. further failure to pay salary increases/bonuses, and making an unjustified finding of misconduct and reporting that conduct to the regulator, Lloyd’s of London. In ruling on the breach of contract claim, the High Court made the important point that resignation on notice because of a repudiatory breach of contract where the notice period amounts to six months or more constitutes an acceptance of the employment contract, so keeping it alive. However, any further breaches during the notice period may be taken into account. Here, the ‘sting in the tail’ was that the 16 May breaches amounted to a repudiation of the contract and Brown and Bhoma were entitled to damages.

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