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When a party to a formal agreement (contract) breaks a condition (term) of that contract.
In an employment context, a breach of contract can occur for many reasons such as an employee refusing to obey a reasonable instruction or the employer failing to pay the employee's wages. Not all breaches will entitle the employee or the employer to terminate the relationship as this is governed by statute and case law.
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Drafting checklist for claim or response—unfair dismissal: redundancy Both parties • Was the Claimant an employee? See Practice Notes: Entitlement to claim unfair dismissal—Eligibility and Employee status • Did the Claimant have requisite qualifying service, or does an exception apply? See Practice Note: Qualifying period for unfair dismissal • Has the Claimant complied with the requirement for early conciliation or does one of the exemptions apply? See Practice Note: The early conciliation requirement • Is the claim brought within the three-month time limit, or the period as extended if the requirement for early conciliation applies? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement—Extension to time limits (the 'stop the clock' provisions) • Is the contract of employment arguably void for illegality? See Practice Note: Entitlement to claim unfair dismissal—Illegality • Does the Claimant fall within a category of employee excluded from unfair dismissal protection, eg police constables. See Practice Note: Entitlement to claim unfair dismissal—Particular types of employment • Was the Claimant’s work based in Great...
Drafting checklist for claim or response—statutory redundancy payment Both parties • Was the Claimant an employee? See Practice Note: Entitlement to statutory redundancy payment—Is the worker an employee—eligibility • Was the Claimant an office holder deemed to be an employee? • Does the Claimant fall within a category of worker excluded from the right to a redundancy payment? See Practice Note: Entitlement to statutory redundancy payment—Is the worker an employee—excluded employees • Was the Claimant an employee dismissed whilst an exemption order was in force? • Was the Claimant dismissed for misconduct without notice or with short notice? If not, was the Respondent entitled to dismiss the Claimant without notice and did the Respondent give the Claimant a notice in writing to that effect? • Was the Claimant dismissed for taking part in a strike? • Did the Claimant give notice to the Respondent that he intended to leave before the end of his notice period, having been given notice of dismissal for redundancy? Did the Respondent serve...
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This Practice Note examines the jurisdiction of the employment tribunal to hear claims for breach of contract under the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994 (ET Extension of Jurisdiction Order 1994), SI 1994/1623.For guidance:•on unlawful deduction from wages claims, see Practice Note: Deductions from wages•on the legal and practical issues to consider when deciding whether an employee should bring a claim for unlawful deduction from wages or a claim for breach of contract, see the section of Practice Note: Deductions from wages—Whether to bring an unlawful deductions claim or a breach of contract claim•on employment claims in the civil courts, see Practice Note: High Court and County Court employment claims•on bringing a claim in the employment tribunal, see Practice Note: Submission of a claim to the employment tribunalFor sample wording for ET1 grounds of claim for breach of contract, see Precedent: ET1 grounds of claim—breach of contract.For sample wording for ET3 grounds for resisting a claim for breach of contract and bringing an employer’s contract claim...
The right to be paid wages in full is one of the most basic, and oldest, employment rights. A failure to pay will generally give a worker the right to bring a claim for unlawful deduction from wages. In a small number of cases, however, an employer is permitted to make a deduction.The worker's rightsAn employer may not make a deduction from the wages of any worker employed by the employer, or receive a payment from such a worker, unless:•it is required or authorised to be made by virtue of any statutory provision or any relevant provision of the worker's contract, or•the worker has previously signified in writing their agreement or consent to the making of itFor further information, see: When deductions are lawful below.For further information:•on the meaning of 'wages' see: Definition of wages below•on the definition of 'worker' for these purposes, see: Definition of 'worker' below•on the circumstances in which deductions are permitted, see: Excepted deductions and payments below•on the claims that a worker may bring, see: Bringing...
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Phantom share option agreement This AGREEMENT is made on [insert date of execution of the phantom share option agreement] Parties 1 [insert name of company whose shares are relevant to the phantom option] (registered number [insert registered number of company]) whose registered office is at [insert registered address of company] (the Company); and 2 [insert name of option holder] of [insert address of option holder] (the Option Holder) Background (A) The Company has agreed to grant to the Option Holder as at the date of this Agreement a Phantom Option on the terms set out in this Agreement. (B) The Phantom Option provides an entitlement to cash and not shares. 1 Definitions In this Agreement, except where the context otherwise requires, the words and expressions set out below will bear the following meanings, namely: Cash Payment • means the cash sum payable on the exercise of the Phantom Option, which shall be calculated in accordance with clause 6.2; Control • has the meaning given...
Unapproved share option agreement—standalone deed for employee This AGREEMENT is made on [insert date of execution of the share option agreement] Parties 1 [insert name of company whose shares are being granted under option] (registered number [insert registered number of company]) whose registered office is at [insert registered address of company] (the Company);[and] 2 [insert name of option holder] of [insert address of option holder] (the Option Holder) [and] 3 [[insert name of grantor (if different from company)] of [insert address of grantor] (the Grantor)] Background (A) [The Company has agreed to grant to the Option Holder as at the date of this Agreement an Option to acquire Shares on the terms set out in this Agreement. OR The Company and the Grantor intend that, as at the date of this Agreement, the Option Holder be granted an Option to acquire Shares on the terms set out in this Agreement.] (B) [The Company will satisfy the exercise of the Option by transferring or procuring the...
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If an employee mistakenly provides incorrect bank details to their employer, with the result that the employer sends their monthly salary to the wrong bank account, must the employer pay the employee immediately (to the correct bank account), or can they wait until they have recouped the money back from the bank? There is a duty to pay wages whenever an employee is ready, willing and able to work (Petrie v McFisheries. The case of Oyesanya v Mid-Yorkshire Hospital NHS Trust concerned the rather different situation where the claimant’s contract provided for payment of salary by bank transfer, but he preferred to be paid by cheque. He was not paid for the simple reason that he had never given the Trust his bank details. The Court of Appeal held that, in these circumstances, the Trust had not been in breach of contract when it failed to pay him during his period of employment. Without such a breach there was no cause of action under the contract. However, when the...
If a self-employed contractor wishes to bring a claim in the county court on the basis that they are in fact a worker and should have been paid the national minimum wage (NMW); does the time limit for bringing a claim run in respect of each instance of failure to pay the NMW payment, or from the most recent instance?; if the parties did not classify or treat the individual as a worker and therefore not paid the NMW, is this a mistake of law or fact for the purposes of extending limitation under section 32(1)(c) of the Limitation Act 1980? For information on the national minimum wage (NMW) generally, see Practice Note: National minimum wage. In principle, a worker may enforce their NMW entitlement by: • bringing a breach of contract claim in the High Court or County Court, or in the Employment Tribunal, or • bringing a claim for unlawful deduction from wages in the Employment Tribunal An individual may also, if they wish, seek a declaration that...
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Arbitration analysis: This case involved a successful partial setting aside of an arbitral Award of damages pursuant to Article 34(2)(a)(iii) of the UNCITRAL Model Law on International Commercial Arbitration (‘Model Law’) on grounds that the Tribunal had exceeded its jurisdiction by deciding on matters beyond the scope of the submission to arbitration. In this case, the Singapore High Court partially set aside a part of the Award imposing liability for damages for breach of contract on two of the three Respondents, finding that the issue of the two Respondents’ breach of contract and liability for the same never arose in the arbitration nor was it within the scope of the submission to arbitration. This case provides useful guidance as to how a court approaches a challenge to an award made in excess of a tribunal’s jurisdiction. Written by Magdalene Ong, partner at WongPartnership LLP.
Dispute Resolution analysis: In Okuashvili v JSC Tbilisi Tobacco, the High Court heard a complex jurisdictional challenge in respect of two separate sets of proceedings brought against various individuals and companies located in or with a nexus to Georgia. The judgment, which resulted in the court ultimately declining jurisdiction over almost all of the claims against all but one defendant, provides a helpful summary of the law applicable to the granting of permission to serve out of the jurisdiction under CPR 6.36 and CPR 6.37. It also serves as a timely reminder to practitioners of the importance of compliance with the duty of full and frank disclosure which arises in the context of without notice applications such as an application for permission to serve a claim out of the jurisdiction, and of the factors the court will take into consideration when determining whether or not there has been valid service out of the jurisdiction. Written by Emily Lodge, senior associate at Quinn Emanuel Urquhart & Sullivan UK LLP.
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