Understanding the Implied Term of Trust and Confidence
In UK employment law, every employment contract contains certain implied terms. These are obligations that are not always written down but are automatically part of the contract. One of the most important is the implied term of mutual trust and confidence.
This term requires both employer and employee not to behave in a way that is likely to destroy or seriously damage the working relationship between them.
In practice, most legal disputes focus on the employer’s obligations. Employees frequently ask whether they can sue if their employer has behaved unfairly, harshly, or unreasonably.
The short answer is yes, but only in certain circumstances. A breach of trust and confidence can form the basis of legal claims, including constructive dismissal and damages for breach of contract.
However, not every unpleasant workplace experience will meet the legal threshold.
This article explains what the implied term of trust and confidence means, when it is breached, and whether you can bring a legal claim in England and Wales.
Free Initial Telephone Discussion
For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of Employment Law, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What Is the Implied Term of Trust and Confidence?
The implied term of trust and confidence is a fundamental principle in employment law.
It means that:
- Employers must not act in a way that destroys trust between themselves and the employee
- Employees must also not undermine the relationship with their employer
- Both sides must treat each other fairly and reasonably
In most cases, legal disputes focus on whether the employer has breached this duty.
The legal test is often framed as whether the employer has acted, without reasonable and proper cause, in a way that is calculated or likely to destroy or seriously damage the relationship of trust and confidence.
This is a high threshold. Tribunals do not intervene in ordinary management decisions or minor workplace disagreements.
When Is the Term Breached?
A breach of the implied term of trust and confidence occurs when an employer’s conduct is so serious that it undermines the employment relationship.
Common examples include:
- Bullying or harassment
- Unfair disciplinary action
- Failure to investigate grievances properly
- Sudden demotion without justification
- Unreasonable changes to job duties
- Withholding pay without good reason
- Discriminatory behaviour
- Victimisation after raising complaints
- Exclusion from work without explanation
It is important to note that intention is not required. An employer can breach the term even if they did not mean to cause harm.
What matters is the effect of their conduct.
Can I Sue for Breach of Trust and Confidence?
Yes, but not usually as a standalone claim.
In most cases, a breach of trust and confidence forms the foundation for other legal claims, rather than being sued for on its own.
The most common routes are:
- Constructive Dismissal
This is the most frequent claim linked to breach of trust and confidence.
If an employer seriously breaches this implied term, an employee may resign and claim that they were constructively dismissed.
To succeed, the employee must show:
- A fundamental breach of contract by the employer
- That they resigned in response to that breach
- That they did not delay too long before resigning
- Wrongful Dismissal
If the employment is terminated without proper notice or in breach of contract, damages may be claimed.
A breach of trust and confidence may contribute to showing that the dismissal was unlawful.
- Discrimination Claims
If the conduct involves protected characteristics such as sex, race, disability, or age, a breach of trust and confidence may support a discrimination claim.
- Breach of Contract Claims
In some cases, employees may bring a direct breach of contract claim in the civil courts, although this is less common for employment disputes.
Examples of Breach of Trust and Confidence
Understanding real world examples helps clarify when the term is breached.
Bullying and Harassment
Persistent bullying by managers or colleagues can easily amount to a breach.
This might include:
- Humiliating comments
- Excessive criticism without justification
- Exclusion from meetings or decision making
- Intimidating behaviour
Failure to Deal With Grievances
If an employee raises serious concerns and the employer ignores them or conducts a biased investigation, this may breach trust and confidence.
Sudden Unjustified Changes
Employers must not fundamentally change job roles without proper consultation or contractual authority.
Examples include:
- Removing key duties without explanation
- Changing reporting lines unfairly
- Reducing responsibilities in a punitive way
Financial Misconduct
Withholding pay or bonuses without justification can be a serious breach.
Retaliation After Complaints
If an employee is treated badly after raising a grievance or whistleblowing, this may also amount to breach.
The Legal Test Applied by Tribunals
Employment tribunals use a structured approach.
They ask:
- Did the employer behave in a way that was likely to destroy trust and confidence?
- Was there reasonable and proper cause for the behaviour?
- Did the conduct have a serious impact on the employment relationship?
Importantly, tribunals assess the situation objectively. It is not enough that the employee felt upset or offended.
The conduct must cross a legal threshold of seriousness.
Can a Single Incident Be Enough?
Yes, in some cases a single incident can amount to a breach.
For example:
- A sudden demotion without explanation
- An unjustified accusation of misconduct
- A serious act of discrimination
- Immediate suspension without proper grounds
However, in many cases, breach of trust and confidence develops over time through a series of incidents.
This is often referred to as a “cumulative breach”.
The Role of Reasonable and Proper Cause
Even if conduct appears unfair, an employer may avoid liability if they can show reasonable and proper cause.
For example:
- Legitimate performance management
- Business restructuring for economic reasons
- Proper disciplinary procedures
- Compliance with legal obligations
The key question is whether the employer acted reasonably in all the circumstances.
How Breach of Trust Leads to Constructive Dismissal
One of the most important consequences of a breach is constructive dismissal.
If trust and confidence is destroyed, the employee may feel forced to resign.
To bring a claim, the employee must show:
- The breach was fundamental
- It went to the heart of the contract
- They resigned because of it
- They acted promptly after the breach
This is often a difficult legal threshold to meet.
Evidence Needed to Prove a Breach
Strong evidence is essential in these claims.
Useful evidence includes:
Written Communication
Emails, messages, and letters showing unfair treatment or unreasonable conduct.
Witness Evidence
Colleagues who observed behaviour can provide supporting statements.
Grievance Documentation
Records of complaints and employer responses are highly relevant.
Timeline of Events
A clear chronology helps tribunals understand the pattern of conduct.
Medical Evidence
Evidence of stress or anxiety can support the seriousness of the impact.
Common Employer Defences
Employers often defend claims by arguing:
Legitimate Management Action
They may say their conduct was part of normal workplace management.
Lack of Seriousness
They may argue that the behaviour was minor or isolated.
Employee Overreaction
Employers often claim the employee misinterpreted events.
Acceptance of Conduct
If the employee stayed in the job too long, the employer may argue they accepted the situation.
Time Limits for Bringing a Claim
Most employment tribunal claims must be brought within three months less one day of the last act complained of.
Before issuing a claim, employees must also go through ACAS Early Conciliation.
Missing deadlines can prevent a claim from proceeding.
Can You Get Compensation for Breach of Trust and Confidence?
Yes, but usually as part of a wider claim.
Compensation may include:
- Loss of earnings
- Future loss of income
- Injury to feelings in discrimination cases
- Statutory awards for unfair dismissal
In constructive dismissal cases, compensation can be significant depending on salary and length of employment.
Should You Resign Before Claiming?
This is a crucial decision.
If you resign:
- You may bring a constructive dismissal claim
- You must show the breach was serious
- Timing becomes critical
If you do not resign:
- You may still bring other claims, such as discrimination or grievance based complaints
Legal advice is strongly recommended before resigning.
Practical Steps if You Believe Trust Has Been Broken
If you believe your employer has breached trust and confidence, you should:
- Keep detailed written records
- Save all communications
- Raise concerns formally where appropriate
- Follow grievance procedures
- Monitor how the situation develops
- Seek legal advice early
Early action can make a significant difference to the strength of any future claim.
Final Thoughts on Breach of the Implied Term of Trust and Confidence
The implied term of trust and confidence sits at the heart of UK employment law. It reflects the basic expectation that employers and employees should treat each other fairly and reasonably.
When that trust breaks down, the legal consequences can be significant. In serious cases, it can justify resignation and a constructive dismissal claim. In others, it may support claims for discrimination or breach of contract.
However, not every difficult workplace situation will meet the legal threshold. Tribunals require clear evidence of serious conduct that undermines the employment relationship.
For employees, understanding this distinction is essential before taking action. For employers, maintaining fair processes and responding properly to concerns is critical to avoiding liability.
At Blackstone Solicitors, we advise employees and employers across England and Wales on constructive dismissal, breach of contract, workplace disputes, and employment tribunal claims. We provide clear, practical legal advice tailored to complex workplace situations.
How to Contact Our Employment Law Solicitors
It is important for you to be well informed about the issues and possible implications of Employment Law. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Employment law solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Please visit our website to see all the Employment Law services we offer: https://blackstonesolicitorsltd.co.uk/employment-law-services/
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
Comments are closed.
