Roberts v Whitecross School, [2012] All ER (D) 233
The Employment Appeal Tribunal permitted the employee's appeal, determining that the employer's decision to halve the employee's pay constituted an anticipatory breach of contract. The case was remited to a new tribunal to decide on the employee's constructive unfair dismissal claim.
Principles Derived:
An employer's genuine belief about the interpretation of a contractual term doesn't shield them from the repercussions of a fundamental breach.
The act of communicating a contractual decision, based on an interpretation, could be regarded as an anticipatory breach.
A term related to pay is fundamental to employment contracts. Any significant alteration can be seen as going to the root of the contract.
The character of the breach, be it fundamental or not, isn't dependent on whether the breach was actual or anticipatory.
Facts & Application of Law: In November 2009, the teacher, employed by the school, took a long-term sick leave due to stress. By March 2010, the school planned to move him to half pay by the end of May. The teacher contested, believing his 'injury' warranted full pay. The employer, however, associated 'injury' with only physical ailments. This disagreement resulted in the teacher's resignation in May 2010.
While the teacher's unpaid wages claim was granted in April 2011, his unfair dismissal claim was rejected. The tribunal believed the employer genuinely interpreted 'injury' differently, thus not amounting to a breach of contract. The teacher appealed this decision.
Reviewing the case, the Employment Appeal Tribunal clarified that even if an employer sincerely believes their interpretation of a contract is correct, acting on that belief might still lead to a breach. In this instance, the employer's declared intent to cut the teacher's pay in half was an anticipatory breach, given its significance. The well-established principle emphasises that pay terms are fundamental in employment contracts.
For individuals considering an appeal from the Employment Tribunal to the Employment Appeal Tribunal regarding contract breaches, this case underscores the significance of pay terms and the potential pitfalls of contractual interpretations that can lead to anticipatory breaches.
