Dismissals due to breakdown in trust and confidence

The implied duty not to damage trust and confidence applies to both employer and employee. When an employee breaches this duty in a serious way it can lead to a fair dismissal for “some other substantial reason”. Employers must not use mutual trust and confidence as a “convenient label to stick on any situation” to justify a dismissal (Leach v OFCOM [2012] EWCA Civ 959).

In most cases of relationship breakdown, the employer must give the employee at least one genuine chance to show that they can work alongside their colleagues (Phoenix House Ltd v Stockman [2016] UKEAT/0264). Other options should be considered before dismissal, such as redeployment, mediation and training.