The Employment Appeal Tribunal has held that a disagreement over an employee’s entitlement to a profit share and over other terms of employment did not provide the employer with ‘some other substantial reason’ for dismissal.

What does this mean?
A ‘power struggle’ over employment terms cannot in itself amount to a breach of the duty to maintain trust and confidence and will not provide evidence that the working relationship has broken down.

What should employers do?
Employers should take care in situations where an employee is arguing about his/her contract and be aware that the mere continuation of a negotiation may well not give grounds for fair dismissal.

Handshake Limited v Summers