Transco Plc v O’Brien: CA 7 Mar 2002

The company appealed against a finding that they were in breach of their contract of employment in not including the claimant in those considered for an enhanced redundancy package.
Held: The appeal failed. Tribunals should be cautious before appearing to extend the terms of the implied duty of trust and confidence between employer and employee.
Pill LJ said: ‘I do not find it necessary or appropriate to consider the effect of the use of that expression which, in my judgment, and for the reasons I have given does not affect the outcome of this appeal. Plainly there are dangers in using terminology which may extend, or may appear to extend, the scope of the implied term of trust and confidence, as explained in the Mahmud case [1977] ICR 606 and the cases cited there. Employment tribunals should apply the tests stated in those cases and not use language which may detract from the correct test or suggest that a different test has been applied.’


Pill LJ, Longmore LJ, Sir Martin Nourse


[2002] EWCA Civ 379, [2002] ICR 721, [2002] Emp LR 787, [2002] IRLR 444




England and Wales


CitedImperial Group Pension Trust Ltd v Imperial Tobacco Ltd 1991
A company pension scheme had been operating for many years, with increases being provided for under one rule. A new rule was introduced to provide regular increases. The company was taken over, and the trustees sought clarification of the company’s . .
CitedMalik v Bank of Credit and Commerce International (BCCI); Mahmud v Bank of Credit and Commerce International HL 12-Jun-1997
Allowance of Stigma Damages
The employees claimed damages, saying that the way in which their employer had behaved during their employment had led to continuing losses, ‘stigma damages’ after the termination.
Held: It is an implied term of any contract of employment that . .

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 . .
CitedBournemouth University Higher Education Corp v Buckland EAT 8-May-2009
EAT UNFAIR DISMISSAL: Constructive dismissal
Whether fundamental breach of implied term of trust and confidence cured, so that the Claimant’s resignation did not amount to constructive dismissal.
Lists of cited by and citing cases may be incomplete.


Updated: 14 October 2022; Ref: scu.216993