The implied term of trust and confidence requires employers and employees not to ‘conduct themselves’, without reasonable and proper cause, in a manner calculated or likely to destroy or seriously damage the relationship of confidence and trust between employer and employee. In Nair v Lagardère Sports and Entertainment UK N alleged that the implied term of trust and confidence had been breached when the employer failed to secure payment of bonuses due from other companies in the broad group of companies in which N was employed and over which the employer had sufficient de facto control. One of the arguments the employer put forward in applying for the claim to be struck out was that a failure to take steps to secure the bonuses (a failure to act) had no prospect of success. The Judge disagreed. The term ‘conduct themselves’ means failing to do something not just actually doing something.
‘Conduct’ in breach of trust and confidence claim can take the form of a failure to act
Article by: Makbool Javaid, Partner - Simons Muirhead & Burton |