Dismissals due to breakdown in trust and confidence 




A breakdown in trust and confidence can lead to a fair dismissal for “some other substantial reason” (Huggins v Micrel Semiconductor (UK) [2004] All ER (D) 07). However, the duty of mutual trust and confidence must not be used as a “convenient label [for employers] to stick on any situation” to justify a dismissal (Leach v OFCOM [2012] EWCA Civ 959). 




In most cases of relationship breakdown, it is unfair to dismiss an employee for breakdown of trust and confidence without giving them at least one genuine chance to show that they can work harmoniously with their colleagues (Phoenix House Limited v Stockman [2016] UKEAT/0264).
In general, other options should normally be considered before dismissal, such as redeployment, mediation and training.


Sometimes the true reason for dismissal is not a breakdown in the relationship between two colleagues but rather, an allegation that one employee is at fault. This is not a dismissal for "some other substantial reason". Instead, it is a dismissal for "misconduct" (see page 328). In other words, a fair dismissal requires reasonable grounds for belief that misconduct has taken place, and dismissal must be a reasonable response to that misconduct. The accused employee must be given proper advance warning of the allegations and a fair chance to put their side of the story (BHS v Burchell [1978] IRLR 379, University of Sunderland v Drossou [2017] UKEAT/0341/16/RN).