Tribunal Decision Shows Not Saying “Hello” to Staff Could Lead to Breach of Contract and Unfair Dismissal

In Ms Nadine Hanson v Interaction Recruitment Specialists Ltd, an employment tribunal ruled that not saying “hello” contributed to a breach of contract. Consequently, Ms Hanson succeeded with her unfair dismissal claim, with her remedy set to be determined in a future hearing. Below, we will discuss what happened in the case, the tribunal’s judgment, and the remedies for a contract breach.

If you have any questions or believe you’ve experienced a similar constructive dismissal case, please reach out. Redmans Solicitors are employment law experts, and following a quick chat, we can advise on your possible next steps.

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The Facts in Ms Nadine Hanson v Interaction Recruitment Specialists Ltd

Breach of Contract Background – The Interaction Recruitment Specialists’ Takeover

Ms Nadine Hanson (“The Claimant”) began working for Interaction Recruitment Specialists Ltd (“The Respondent”) on 15 September 2023. She had worked for the respondent’s predecessor since 2003 as an operations manager, but when they went into administration, the respondent took over. At such time, her employment was transferred under the Transfer of Undertakings (Protection of Employment) Regulations.

Five days after the takeover, Mr Andrew Gilchrist, the respondent’s owner and director, visited the office to meet the workforce. At that time, he learned the claimant predominantly worked from home and quickly judged that she did very little, relying heavily on her colleagues. Unfortunately, this impression was formed without having a private discussion concerning her role or receiving clear information about it.

Director Ignores Claimant’s “Hello”

On 26 September, when Mr Gilchrist revisited the office, the claimant was late to work due to a medical appointment. When she eventually arrived, she said “hello” to the director on three occasions, but he ignored her each time. 

This led to the pair having a private discussion, during which the claimant attempted to explain her lateness. She presented evidence of her appointment, but Mr Gilchrist brushed this away, stating, “I suggest if you don’t want to be here that you leave”. With 20 years of service for the respondent and its predecessor combined, the claimant was unhappy with this remark and said, “The only way I will be leaving is if you make me redundant”.

Shortly after this meeting, the director emailed two employees managed by the claimant and offered them a pay rise. The claimant wasn’t involved in this decision, and when she found out, she felt humiliated.

Ms Hanson Brings Constructive Dismissal Claim

On 2 October, the claimant handed in her eight weeks’ notice. She explained that this decision stemmed from feeling undervalued by the respondent, a sentiment she hadn’t experienced before the takeover. Since Mr Gilchrist refused to place her on garden leave during her notice period, she began anxiety-related sick leave on 11 October after covering for a colleague and never returned.

The claimant then commenced ACAS early conciliation on 7 December. Once this was complete, she brought claims, including unfair dismissal arising from a breach of contract, which were presented to the employment tribunal on 21 March 2024.

Employment Tribunal’s Decision: Not Saying Hello Contributed to Unreasonable Behaviour

The employment tribunal quickly established that Mr Gilchrist had ignored the claimant on three occasions when she’d said good morning. They stated he did this because he believed she was inexcusably late, not knowing she’d been at a medical appointment.

Taking this into account, along with Mr Gichrist’s subsequent actions, the tribunal ruled he’d formed the view that “she did not pull her weight” and “no longer had a future in the business”. In their mind, this conduct was calculated and would destroy the trust and confidence between both parties.

The tribunal then discussed how there had been no reasonable or proper cause for the respondent’s actions. While each incident alone may not have amounted to a fundamental breach of contract, combined, it was determined they did. As such, the tribunal held that Ms Hanson had faced constructive dismissal, and a remedy hearing will take place in the future to decide her compensation.

What Actions Can Be Taken for a Breach of Contract?

An employment contract is a legally binding agreement between an employer and an employee that outlines the terms and conditions of the employment relationship. As Interaction Recruitment Specialists found out, breaching a contract of employment can lead to significant legal consequences.

In such circumstances, individuals have several avenues available to them to rectify the issue. However, before discussing the remedies for a contract breach, understanding what constitutes a breach is vital.

What Counts as a Contract Breach?

Breaching a contract of employment involves going against the agreed-upon terms in the legal document. Examples of a breach of contract include failing to pay wages or changing the terms of employment without proper agreement. In the above case, the respondent’s conduct constituted a breach, as it destroyed the implied term of mutual trust and confidence, amounting to constructive dismissal.

Remedies for a Contract Breach

If one’s employer has breached their employment contract, several steps can be taken to address the matter. Firstly, it’s worth noting that if the breach is only minor, the individual may wish to waive it. In such circumstances, the incident would be ignored, and employment would continue.

However, if the individual doesn’t want to grant such a waiver, they should raise the issue. Depending on the severity of the breach of contract, an informal or formal complaint could be made. In either scenario, solving the problem via a complaint would remove the need to pursue stressful tribunal proceedings. That said, if a formal grievance is raised, additional obligations would be placed on the employer.

If neither complaint manages to rectify the problem, though, court action may be required. Should this be the case, ACAS early conciliation would need to be undertaken, and specific eligibility criteria met. If someone wants to go down the employment tribunal route, it’s advised they speak with a legal professional first.

If you have any questions or think you’ve faced unfair dismissal, please don’t hesitate to contact Redmans Solicitors. As experts in the employment law sector, we can assess whether you’ve also been subject to a breach of contract and advise you on your possible next steps.

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