Hill v General Accident Fire & Life Assurance Corporation Plc [1998] ScotCS 10 (13 August 1998)

Hill v General Accident Fire & Life Assurance Corporation Plc [1998] ScotCS 10 (13 August 1998)

On a proper construction of the contract, including the implied term of trust and confidence, the employer was entitled to dismiss the pursuer by reason of redundancy notwithstanding his absence on sick leave and receipt of sick pay, as long as the dismissal was genuine and with cause. The contract did not confer immunity from redundancy dismissal on employees absent due to sickness, and no implied term prevented such dismissal except for gross misconduct.

Citation
[1998] ScotCS 10
Parties
Pursuer: Brian Douglas Hill; Defender: General Accident Fire and Life Assurance Corporation Plc
Jurisdiction
Scotland
Judgment Date
13 August 1998
Procedural Posture
Employment Contract Dispute / Opinion Following Debate on Relevancy of Pleadings
Outcome
Action as presently framed is irrelevant and will fall to be dismissed, subject to possible amendment of pleadings.
Legal Topics
Redundancy, Sick Pay Entitlement, Implied Terms, Dismissal, Mutual Trust and Confidence
Employment Law Contract Law Redundancy Sick Pay Entitlement Implied Terms Dismissal Mutual Trust and Confidence

Case Brief

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Parties

Brian Douglas Hill

Pursuer

General Accident Fire and Life Assurance Corporation Plc

Defender

Procedural Posture

Employment Contract Dispute / Opinion Following Debate on Relevancy of Pleadings

Legal Issues

  1. 1 Whether an employer can lawfully dismiss an employee on grounds of redundancy while the employee is absent on sick leave and in receipt of sick pay benefit, thereby terminating prospective entitlement to long-term sickness provision.
  2. 2 Whether there is an implied term in the contract preventing dismissal in such circumstances except for gross misconduct.

Ratio Decidendi

On a proper construction of the contract, including the implied term of trust and confidence, the employer was entitled to dismiss the pursuer by reason of redundancy notwithstanding his absence on sick leave and receipt of sick pay, as long as the dismissal was genuine and with cause. The contract did not confer immunity from redundancy dismissal on employees absent due to sickness, and no implied term prevented such dismissal except for gross misconduct.

Court Disposition

Action as presently framed is irrelevant and will fall to be dismissed, subject to possible amendment of pleadings.

Orders

  • Case put out By Order for further procedure to allow pursuer to consider amendment of pleadings.