Duty of Employers to Disclose Breaches of Contracts: BCCI v Ali and Others
| Pages | 359-361 |
| DOI | https://doi.org/10.1108/eb025909 |
| Date | 01 February 1999 |
| Published date | 01 February 1999 |
| Author | Masooma Jaffer |
| Subject Matter | Accounting & finance |
Journal of Financial Crime — Vol. 6 No. 4 — Employment Law
EMPLOYMENT LAW
Duty of Employers to Disclose Breaches of
Contracts: BCCI v Ali and Others
Masooma Jaffer
In BCCI v Ali, the court was faced with the question
whether an employer is under a duty to disclose
breaches of contract where they may give rise to
risks to the physical, financial and psychological
welfare of the employee.
The two employees in this case were dismissed by
BCCI in a wave of redundancies. Their dismissals
took effect on 30th June, 1990. On 4th July, 1990
each of the employees in consideration of
a
payment
by the bank signed an agreement by which they
agreed to accept the payment made in full and final
settlement of all or any claims existing or that may
exist against the bank. The employees now wished
to maintain claims against the bank for damages for
breach of their employment contracts. The bank con-
tended that they were precluded from doing so by
the agreement. However the employees raised the
essential issue of the existence of an obligation of
disclosure of his own breaches of the employment
contract owed by an employer to his employee.
The most important claims were for stigma damages
in respect of the alleged breach of the implied Trust
and Confidence (the T and C term) of their employ-
ment contracts.
Page 359
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