Breach Of Contract

If the employer breaches any of the terms of the employee’s contract of employment and the employee suffers a loss as a result, then the employee may make a claim for breach of contract. However, a claim for breach of contract can only be made to an Employment Tribunal if the claim arises or is outstanding on the termination of the employee’s employment. Examples of breach of contract claims include unpaid wages and bonuses and unpaid holiday pay but claims for personal injury or in relation to restrictive covenants or intellectual property rights are excluded.

The Employment Tribunals can award damages of up to a maximum of £25,000 for breach of contract claims but the employee cannot start a claim for breach of contract in an Employment Tribunal and then try and seek the balance from the Courts. The employer may counter-claim where the employee has brought a claim against the employer for breach of contract in the Employment Tribunal as long as the employee has not either withdrawn or settled their claim.

The employee has 3 months after the termination of their employment to bring a claim for breach of contract to an Employment Tribunal. Courts can hear claims for up to 6 years after the breach of contract complained of occurred and there is no cap on the amount of damages the Courts can award.