The Court of Appeal has held that if an employer suspects an employee to be guilty of misconduct, it should instigate disciplinary proceedings against the employee or reserve its position to bring future disciplinary proceedings against the employee. If it knows of an act amounting to a breach of contract by an employee and does nothing, the employer may be taken to have affirmed the contract and will not subsequently be able to rely on a breach to justify dismissal (Cook v NSHK Limited and Ministry of Sound Recordings Limited).