Crossley v Faithful & Gould Holdings Ltd

Last updated

Crossley v Faithful & Gould Holdings Ltd
CourtCourt of Appeal
Citation(s)[2004] EWCA Civ 293
Keywords
Insurance, implied terms

Crossley v Faithful & Gould Holdings Ltd [2004] EWCA Civ 293 is an English contract law case, concerning implied terms in employment contracts.

Contents

Facts

Crossley was a long-standing employee and director of Faithful & Gould Holdings Ltd. He fell sick and was unable to work. As a member of the firm’s disability insurance scheme he was entitled to benefits while he remained employed by the company. He was advised by his doctor to seek early retirement on health grounds as he was not expected to recover from his illness. After discussions with his employer he tendered his resignation in terms suggested by the company. The resignation resulted in the loss of entitlement to benefits and the scheme insurer stopped payments after one year. Crossley sought a ruling that an implied term of his contract of employment was that the employer would take reasonable care for his economic well-being and that by not drawing his attention to the loss of benefits had failed in this duty of care. [1]

Judgment

The court rejected Crossley's claim. Firstly it held that his resignation had been at his own instigation and secondly that, as a senior employee and director, it was reasonable to expect him to have reviewed the terms of the scheme or taken advice before resigning. [1]

See also

Notes

  1. 1 2 Crossley v Faithful & Gould Holdings Ltd,IRLR( EWCA 16 March 2004).


Related Research Articles

<span class="mw-page-title-main">United Kingdom labour law</span> Labour rights in the UK

United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK can rely upon a minimum set of employment rights, which are found in Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £10.42 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995.

In employment law, constructive dismissal, also called constructive discharge or constructive termination, occurs when an employee resigns as a result of the employer creating a hostile work environment. Since the resignation was not truly voluntary, it is, in effect, a termination. For example, when an employer places extraordinary and unreasonable work demands on an employee to obtain their resignation, this can constitute a constructive dismissal.

In United Kingdom law, the concept of wrongful dismissal refers exclusively to dismissal contrary to the contract of employment, which effectively means premature termination, either due to insufficient notice or lack of grounds. Although wrongful dismissal is usually associated with lack of notice sometimes it can also be caused by arbitrary dismissal where no notice was required but certain grounds were specified in the contract as being the only ones available but none existed.

Unfair dismissal in the United Kingdom is the part of UK labour law that requires fair, just and reasonable treatment by employers in cases where a person's job could be terminated. The Employment Rights Act 1996 regulates this by saying that employees are entitled to a fair reason before being dismissed, based on their capability to do the job, their conduct, whether their position is economically redundant, on grounds of a statute, or some other substantial reason. It is automatically unfair for an employer to dismiss an employee, regardless of length of service, for becoming pregnant, or for having previously asserted certain specified employment rights. Otherwise, an employee must have worked for two years. This means an employer only terminates an employee's job lawfully if the employer follows a fair procedure, acts reasonably and has a fair reason.

<span class="mw-page-title-main">Equal Pay Act 1970</span> United Kingdom legislation

The Equal Pay Act 1970 was an Act of the Parliament of the United Kingdom that prohibited any less favourable treatment between men and women in terms of pay and conditions of employment. The Act was proposed by the then Labour government, and was based on the Equal Pay Act of 1963 of the United States. It has now been mostly superseded by Part 5, chapter 3! of the Equality Act 2010.

<span class="mw-page-title-main">Employment Rights Act 1996</span> United Kingdom Law

The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law.

<span class="mw-page-title-main">English contract law</span> Law of contracts in England and Wales

English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth, from membership in the European Union, continuing membership in Unidroit, and to a lesser extent the United States. Any agreement that is enforceable in court is a contract. A contract is a voluntary obligation, contrasting to the duty to not violate others rights in tort or unjust enrichment. English law places a high value on ensuring people have truly consented to the deals that bind them in court, so long as they comply with statutory and human rights.

<i>Liverpool City Council v Irwin</i>

Liverpool City Council v Irwin [1976] UKHL 1 is a leading English contract law case concerning the basis on which courts may imply terms into contracts; in particular in relation to all types of tenancies, a term may be implied if required for a particular relationship, such as for the landlord to keep the stairwells clear in a tower block. The tenants also had a duty of reasonable care which some among them had been repeatedly breached and led to a continuing breach in matters of damage about which they complained so they were not entitled to withhold rent on the facts.

In English law, implied terms are default rules for contracts on points where the terms which contracting parties expressly choose are silent, or mandatory rules which operate to override terms that the parties may have themselves chosen. The purpose of implied terms is often to supplement a contractual agreement in the interest of making the deal effective for the purpose of business, to achieve fairness between the parties or to relieve hardship.

<i>Attorney General of Belize v Belize Telecom Ltd</i>

Attorney General of Belize v Belize Telecom Ltd[2009] UKPC 10 is a judicial decision of the Privy Council in relation to contract law, company law and constitutional law. It concerns the correct method for interpretation and implication of terms into a company's articles of association.

<i>Scally v Southern Health and Social Services Board</i>

Scally v Southern Health and Social Services Board [1992] 1 AC 294 is an English contract law case, relevant for pensions and UK labour law, concerning implied terms.

<i>Equitable Life Assurance Society v Hyman</i>

Equitable Life Assurance Society v Hyman [2000] UKHL 39 is an English contract law case, concerning implied terms.

Imperial Group Pension Trust Ltd v Imperial Tobacco Ltd [1991] 1 WLR 589 is an English trust law case, especially relevant for UK labour law and UK company law, concerning pension funds and the implementation of a poison pill.

Johnson v Unisys Limited [2001] UKHL 13 is a leading UK labour law case on the measure of damages for unfair dismissal and the nature of the contract of employment.

<i>Johnstone v Bloomsbury HA</i>

Johnstone v Bloomsbury Health Authority [1992] QB 333 is an English contract law case, concerning implied terms and unfair terms under the Unfair Contract Terms Act 1977.

An employment contract in English law is a specific kind of contract whereby one person performs work under the direction of another. The two main features of a contract is that work is exchanged for a wage, and that one party stands in a relationship of relative dependence, or inequality of bargaining power. On this basis, statute, and to some extent the common law, requires that compulsory rights are enforceable against the employer.

<i>Transco plc v OBrien</i>

Transco plc v O'Brien[2002] EWCA Civ 379 is a UK labour law case concerning the contract of employment.

Murray v Minister of Defence is an important case in South African labour law. An appeal from a decision in the Cape Provincial Division by Yekiso J, it was heard in the Supreme Court of Appeal (SCA) on 18 February 2008. Mpati DP, Cameron JA, Mlambo JA, Combrinck JA and Cachalia JA presided, handing down judgment on 31 March. Counsel for the appellant was KPCO von Lieres und Wilkau SC ; NJ Treurnicht SC appeared for the respondent. The appellant's attorneys were Van der Spuy Attorneys, Cape Town, and Hill McHardy & Herbst Ing, Bloemfontein. The respondent was represented by the State Attorney, Cape Town, and the State Attorney, Bloemfontein.

In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law. Laws governing wrongful dismissal vary according to the terms of the employment contract, as well as under the laws and public policies of the jurisdiction.

<i>Reda v Flag Ltd</i>

Reda v Flag Ltd [2002] UKPC 38 is a case from Bermuda law, advised upon by the Privy Council, that is relevant for UK labour law and UK company law concerning the dismissal of a director.