Breach of contract takes place where a party to a contract fails to comply with any of the terms of the contract, whether express or implied. For example, a dismissal without notice or with inadequate notice (or inadequate payment in lieu – a “PILON”), other than when an employer is acting in response to a serious breach by the employee, will be a breach of contract, often referred to as a wrongful dismissal.
If the employee can prove that he has lost out financially because of a breach of the contract, he or she may decide to claim compensation.
Some of the most common areas are claims for non-payment of wages, travel expenses, holiday pay or contractual sick pay, failure by an employer to pay an employee during their notice period if the employee has been dismissed, failure to pay PILON if the employee has been dismissed without the correct notice, unilateral changes to an employee’s terms and conditions, failure by an employer to follow correct disciplinary, dismissal or grievance procedures set out in the contract, loss of company car, pension, share options and bonuses.
A claim for breach of contract can either be made to an Employment Tribunal (but only where the employee is no longer employed by the employer and with a limit of £25,000) or otherwise through the Sheriff Court, usually in Scotland the Sheriff Court, even if the employee remains employed.
Whether you are an employer needing guidance on defending a breach of contract claim at court or Tribunal or an employee who wishes to make a claim for breach of contract our expert team will provide clear practical advice and quality representation.
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