Transco Plc v O'Brien [2002] EWCA Civ 379 (7 March 2002)

Transco Plc v O'Brien [2002] EWCA Civ 379 (7 March 2002)

It is a breach of the implied term of trust and confidence for an employer to single out an employee and refuse to offer him the same improved contractual terms as are offered to the rest of the workforce, especially where the employee qualifies as a permanent employee; honest but erroneous belief about employment...

Source-derived case information.

Citation
[2002] EWCA Civ 379
Parties
Applicant: Transco PLC (formerly BG PLC); Respondent: Paul O'Brien
Jurisdiction
England and Wales
Judgment Date
07 March 2002
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Implied Terms, Redundancy Payments, Trust and Confidence, Variation of Contract
Employment Law Contract Law Implied Terms Redundancy Payments Trust and Confidence Variation of Contract

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 2
Sign in to unlock

Parties

Transco PLC (formerly BG PLC)

Applicant

Paul O'Brien

Respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the implied term of trust and confidence obliges an employer to offer enhanced redundancy terms to all permanent employees
  2. 2 Whether failure to offer improved terms to one employee constitutes breach of contract

Ratio Decidendi

It is a breach of the implied term of trust and confidence for an employer to single out an employee and refuse to offer him the same improved contractual terms as are offered to the rest of the workforce, especially where the employee qualifies as a permanent employee; honest but erroneous belief about employment status does not excuse breach.

Court Disposition

appeal dismissed

Orders

  • Respondent awarded costs of the appeal, subject to detailed assessment if not agreed.
  • Permission to apply to the House of Lords refused.