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Breach of employment contract
If you feel your employer has breached your contract of employment you may be able to present a claim in the employment tribunal. For advice we recommend completing our online enquiry form - by completing the form as fully as possible, it will allow us to assess your case much more efficiently to tell you whether we can assist and what funding option we can recommend.
What is a breach of contract?
A breach of contract will occur when your employer fails to comply with the terms of your contract of employment. Examples of contractual breach could be:
- Failure to pay salary
- Failure to pay notice upon dismissal (also known as a wrongful dismissal)
- Failure to pay the correct amount of notice pay
- Varying terms of the contract without agreement
- Removing contractual benefits without authority to do so
- Failure to pay holiday pay
- Failure to pay pension contributions
- Failure to pay contractual commission or bonus payments
It is worth noting that the employment tribunal have a limit on the value of claims for breach of contract, which is a maximum value £25,000. It may therefore be that, depending on the value of the contractual breach, you may wish to consider whether you present your claim in the employment tribunal or the civil courts.
Understanding your rights in a breach of employment contract case
Employees are entitled to fair treatment and protection under UK employment law. When your employer does not honour the terms set out in your contract, this constitutes a breach of employment contract and can have significant consequences for your financial and emotional wellbeing. Employment contracts are legally binding documents, and any deviation from agreed terms without your consent may provide grounds for legal action. Knowing your rights and taking timely action can be key to achieving a fair resolution.
Your employment contract should outline specific obligations and expectations from both parties. These may cover salary, notice periods, working hours, job duties, bonus schemes, and more. When an employer fails to fulfil any of these elements, especially without consultation or agreement, you may have legal recourse. It’s essential to identify the breach early and obtain legal advice on how to move forward strategically.
Common defences employers use in breach of contract claims
Employers often attempt to justify their actions when accused of breaching an employment contract. Understanding these common defences can help you prepare a stronger case. Typical arguments include:
- Claiming the breach was minor and did not affect the contract’s core terms
- Asserting the employee agreed to a variation in terms, whether formally or informally
- Maintaining that the contractual term in question was discretionary (e.g. bonuses)
- Arguing the contract was terminated lawfully for misconduct or redundancy
- Stating the contract was not signed or was replaced by a more recent agreement
Each of these defences requires careful legal analysis to assess its validity. An experienced employment solicitor can help counter these arguments effectively with evidence and appropriate legal principles.
How breach of employment contract affects your future employment
A breach of employment contract not only impacts your present working situation but may also affect your career progression. Losing out on contractual pay, benefits, or bonuses can create financial hardship, while dismissal or demotion could damage your professional reputation. In certain cases, it may also limit your eligibility for statutory entitlements such as redundancy pay or unfair dismissal compensation.
In instances of wrongful termination, pursuing a claim not only seeks to rectify the immediate breach but helps to formalise the circumstances of your departure. This can prove useful when applying for future roles, as it may help clarify that your termination was in breach of contract rather than a justified dismissal.
Alternative dispute resolution options
Before escalating matters to a tribunal or court, alternative dispute resolution (ADR) methods may be considered. These can help resolve contract issues more quickly and with less expense. Common ADR options include:
- Mediation: A neutral third party facilitates a discussion between employer and employee to reach a solution.
- Conciliation: Often conducted through ACAS, this process helps both sides come to an agreement before tribunal proceedings begin.
- Arbitration: An independent arbitrator makes a binding decision after hearing both sides.
Choosing ADR can help preserve the employment relationship or bring about a swift, confidential resolution without the stress of litigation.
Types of damages available for breach of employment contract
If your claim is successful, there are various forms of compensation that may be awarded. The purpose of damages is to place you in the financial position you would have been in had the contract not been breached. Examples include:
- Unpaid wages or salary
- Compensation for lost benefits (e.g. healthcare, bonuses, company vehicle)
- Damages for loss of notice pay or redundancy payments
- Legal costs (where applicable)
The employment tribunal will consider your financial losses carefully, supported by documentary evidence such as payslips, contracts, and correspondence. You may also be able to claim for costs linked to securing alternative employment, although these are more common in civil court proceedings.
Why choose Stephensons for breach of employment contract claims
Stephensons is a nationally recognised law firm with a strong reputation for delivering expert legal services across a wide range of employment law matters. Choosing the right legal representation can make a significant difference to the outcome of your case. Here is why you should consider us:
- Accredited by The Law Society for Employment Law – a mark of excellence and expertise in the field
- Over 35 years of experience advising employees on contract breaches, unfair dismissal, discrimination, and wrongful termination
- Proven track record of success in employment tribunals and civil courts for breach of contract cases
- Dedicated employment law team focused on individual employee representation
- Free initial consultation to assess the merits of your case
- Flexible funding options including no win no fee arrangements, fixed fees, and hourly rates to suit your financial situation
- Client-first approach with consistent communication, transparency, and support through every step of the process
Stephensons has received industry recognition from respected directories including Legal 500 and Chambers UK. Our solicitors are frequently sought after for their clear legal insight, robust advocacy and empathetic approach to client care.
How to strengthen your breach of employment contract claim
To provide the strongest possible foundation for your claim, gather as much supporting documentation as possible. Consider compiling the following:
- Original and updated copies of your employment contract
- Any written communications regarding pay, bonuses, or changes in terms
- Evidence of financial loss (bank statements, payslips)
- Details of conversations with management or HR regarding the breach
- Diary notes or a timeline outlining events leading up to the breach
Keeping accurate records can greatly support your position and help your solicitor argue your case convincingly before a tribunal or court.
Get in touch
Whether you are currently employed or have already left your job, it's crucial to understand your options. The team at Stephensons are on hand to offer clear, practical advice tailored to your individual circumstances. We are here to protect your rights and pursue the compensation you deserve if a breach of employment contract has occurred. For advice we recommend completing our online enquiry form - by completing the form as fully as possible, it will allow us to assess your case much more efficiently to tell you whether we can assist and what funding option we can recommend.
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