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Contracts of employment: No implied duty to take care for employee's economic wellbeing

This report relates to 1 case(s)

Key Points

In Crossley v Faithful & Gould Holdings Ltd the Court of Appeal holds:

  • There is no implied contractual obligation for an employer to take reasonable care for its employees' economic wellbeing. Neither could it be said that it was necessary, in the particular circumstances, to imply a term imposing a duty on the employer to warn the employee that his decision to retire on health grounds would result in the loss of rights under his employer's long-term disability insurance scheme.
  • The employer did not assume any responsibility for giving the employee financial advice, and the employee, a director of the employer company who had access to advice with regard to his situation, could reasonably have been expected to be aware of the scheme's terms.