Murco Petroleum Ltd v Forge: EAT 1987

The employer was found to have acted unreasonably but was not in significant breach going to the root of the contract where what they had done was not a ‘capricious exercise’ and was not an ‘arbitrary decision’. The employee’s claim of constructive dismissal failed. ‘There is no general principle that an implied obligation to provide regular pay increases should be read into a contract of employment and that the industrial tribunal had erred in law in holding that there was such an implied term in the employee’s contract; that further, even if there was an implied term that an employer would not treat an employee arbitrarily, capriciously or inequitably in matters of pay, the industrial tribunal had failed to consider whether the employers had in fact acted arbitrarily; and that if the industrial tribunal had considered the matter, they would have concluded that the employers had not acted capriciously and, accordingly, the employee had not been unfairly dismissed.’

[1987] ICR 282
England and Wales
Cited by:
CitedAbbey National Plc v Fairbrother EAT 12-Jan-2007
EAT Unfair Dismissal
Disability discrimination
The Tribunal had found a dismissal to be unfair because of flaws in a grievance procedure, following which the Claimant had resigned. They also found . .

Lists of cited by and citing cases may be incomplete.


Leading Case

Updated: 09 November 2021; Ref: scu.279805