Workplace behaviour and breach of employment contract

Issues surrounding workplace behaviour and breach of employment contract have been in the news recently. Most recently, the CEO of BP stepped down for not being “fully transparent” over “historical relationships” with colleagues.

Earlier in the year, Tesco’s chairman stood down following allegations of inappropriate behaviour, and the CBI Director General was sacked following sexual assault claims. Additionally, we saw allegations by over 100 McDonalds employees of bullying, harassment, and sexual assault in the workplace.

In many cases, the inappropriate behaviour has been found to breach the terms of their employment contract.

Contract of employment governs the working relationship

A contract of employment is a legally binding agreement between employer and employee. It sets out the terms and conditions governing the working relationship. There are conditions and responsibilities on both sides. As such, the contract could be breached by either side.

There is an implied duty of trust and confidence that exists between an employee and employer. An employer has a duty of care to its employees. Bullying and harassment in the workplace could amount to a repudiatory breach of contract. If the employer fails to prevent an employee from being harassed or bullied, this could breach the employer’s duties.  Also, there are employee responsibilities to ensure that they act in a way that maintains the relationship of trust and confidence between employer and employee.

Dealing with a potential breach of contract

Fundamental breaches could result in the instigation of disciplinary procedures. In that instance, it is necessary to carry out a formal and thorough investigation. Without a proper investigation, any dismissal could be deemed to be unfair, and the employee could claim constructive dismissal. It is always sensible to seek advice from an employment law solicitor at an early stage to ensure that you follow due process and avoid costly mistakes.

Dealing with inappropriate behaviour in the workplace

There are several steps you can take to help ensure that workplace behaviour is appropriate and to deal with any unacceptable behaviour.

• Put in place a workplace Code of Conduct that clearly sets out the standards and expectations for employee behaviour. Make sure you communicate this effectively to all staff.
• Train managers and supervisors in how to recognise and deal with any inappropriate behaviour in the workplace.
• Make sure that the behaviour of senior managers sets the tone and standard for the firm culture
• If someone raises a complaint, make sure you take it seriously and investigate properly.
• Implement an appropriate disciplinary process to deal with any inappropriate behaviour issues.

Employers should regularly review contracts of employment to ensure they are relevant to the operational context of the business and current employment law. For further advice and information on dealing with breaches of the employment contract and/or inappropriate behaviour in the workplace, please contact: