Employment: Implied Term of Confidence

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In Milne v Link Asset Security Company Limited▪ Suspension by itself did not constitute a
[2005], Mr Milne was employed by Link Assetbreach of implied duty of trust and confidence and
Security Company Limited (LASL)from 30 Septemberultimately a fundamental breach of an employee's
1999 until 22 December 2003 as a broker andcontract of employment;
manager.▪ In order to determine whether a
Mr Milne was suspended from his job by LASL on 12suspension constitutes a breach of the implied duty
December 2003, pending a disciplinary hearing on 17of trust and confidence, the tribunal must have
December 2003. At the disciplinary hearing, issuesconsidered the surrounding circumstances including
which related to Mr Milne's performance and conduct(i) the reasons for suspension
were mentioned but without detail. Mr Milne decided(ii) the length of suspension
not to go to a second proposed meeting on 19(iii) whether the employee lost his income
December 2003 and instead resigned to avoid the(iv) whether the employee was replaced; and
embarrassment of dismissal. Mr Milne then(v) whether the contract required the employer to
commenced proceedings against LASL for unfairprovide work to the employee;
dismissal and breach of his employment contract.▪ In this case, the suspension was short, Mr
The Employment Tribunal (criticised LASL's decision toMilne was still in his job, his remuneration was not
suspend Mr Milne before the disciplinary hearing, theaffected and LASL was keen to ensure Mr Milne
absence of an investigation before the meeting andstayed. There was therefore no breach of the
LASL's failure to allow Mr Milne to state his case. Theimplied duty of trust and confidence and Mr Milne had
Employment Tribunal however found there was nonot established an overwhelming case that the
breach of Mr Milne's contract of employment as aEmployment Tribunal had come to an unreasonable
result of his suspension and the way in which thedecision.
disciplinary proceedings were conducted.The appeal was dismissed.
Mr Milne appealed on the ground that theComment: If you require further information on
Employment Tribunal's decision was perverse in thatcontracts of employment please contact us.
it did not find that LASL was in breach of theEmail: © RT COOPERS, 2006. This Briefing Note
contract of employment.does not provide a comprehensive or complete
The Employment Appeal Tribunal held that:-statement of the law relating to the issues discussed
▪ Mr Milne had to show an overwhelmingnor does it constitute legal advice. It is intended only
case that the Employment Tribunal made a decisionto highlight general issues.