Breach of employment contract by employee is an issue that most UK employers encounter at some point. I’m John Bloor from EBS Law, and in this article I explain what a breach is, the common types of employee breaches, and the practical steps employers should take to protect their business.
What is a breach of employment contract?
An employment contract sets out the agreed terms between employer and employee. When one party fails to meet those terms, it amounts to a breach. For employees, breaches can include failing to turn up for work, refusing to follow reasonable instructions, breaching confidentiality, or resigning without proper notice. Understanding what counts as a breach helps employers respond fairly and lawfully.
Minor vs serious breaches
Not every breach justifies serious action. Some are minor and best dealt with informally, such as occasional lateness. Others may be so serious they amount to gross misconduct, for example theft, violence, or serious breaches of confidentiality. Employers should distinguish between these categories before deciding how to act.
Common examples
Employers often face breaches such as:
- Failure to work agreed hours without authorisation
- Not giving the required notice on resignation
- Misuse of confidential information or data
- Refusal to follow lawful and reasonable instructions
- Working for a competitor while still employed
Each situation is different, but employers should always check the written contract before responding.
Consequences of breach of employment contract by employee
The consequences vary depending on the seriousness of the breach. Options may include informal warnings, formal disciplinary action, withholding pay (where lawful), or even dismissal for gross misconduct. In some cases, employers may also seek damages through the courts, though this is relatively rare in practice due to costs and time involved.
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Call John today on 01625 875587 or email enquiries@ebslaw.co.uk for tailored support.
Resignation without notice
One of the most common breaches is when an employee resigns without giving the required contractual notice. Employers may suffer disruption, especially in customer-facing roles. While it is possible to pursue damages for loss caused by such a breach, many employers instead focus on minimising disruption and recruiting a replacement. If the employee owes money to the business (for example, unreturned equipment), you may be able to make lawful deductions from final pay, provided this is covered in the contract.
How to respond to breach of employment contract by employee
Employers should respond proportionately. The key steps are:
- Check the employment contract to confirm the breached term
- Investigate the facts before taking action
- Consider whether the breach is minor or serious
- Apply your disciplinary procedure fairly
- Document decisions and communicate clearly with the employee
A fair process protects your business and reduces the risk of counterclaims for unfair dismissal or discrimination.
Disciplinary process
Where breaches are significant, a disciplinary process may be appropriate. Invite the employee to a meeting, present the evidence, and allow them to respond. After considering all facts, decide on an appropriate sanction ranging from a warning to dismissal for gross misconduct. Always confirm decisions in writing and allow an appeal.
Legal claims arising from breach of employment contract by employee
Although employees are usually the ones bringing claims, employers can also take legal action where losses are caused. For example, if an employee leaves without notice and the business incurs costs hiring agency cover, the employer may sue for damages. In practice, this is uncommon but remains an option in extreme cases. For general background, see the ACAS overview of contracts and breaches here: ACAS: employment contracts.
Post-termination restrictions
Many contracts include restrictive covenants preventing employees from joining competitors, soliciting clients, or poaching staff for a set period after leaving. Breaching these restrictions is a contractual breach, and employers may enforce them through injunctions or damages claims. The enforceability of restrictions depends on whether they are reasonable in scope, duration, and geography.
Checklist for employers
- Identify the contractual term breached
- Assess the seriousness of the breach
- Consider informal resolution first where appropriate
- Use disciplinary processes for serious breaches
- Seek legal advice before pursuing damages or injunctions
Mitigating disruption
Sometimes the practical impact of a breach matters more than punishment. Employers should plan for handovers, ensure equipment is returned promptly, and secure client relationships. This proactive approach limits damage while maintaining staff morale.
Contact John Bloor today for expert support at EBS Law. We’re here to ensure your business stays protected every step of the way. Call 01625 875587 or email enquiries@ebslaw.co.uk.
You may also find these EBS Law resources helpful:
- Unpaid Leave: Disciplinary & Breach Advice for Employers
- Contractual Notice Period Changes – What UK Employers Must Know
- Probationary Period Dismissal UK for Employers
Disclaimer: This article provides general information only and does not constitute legal advice. For tailored advice on your specific circumstances, please contact us directly.