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Contracts of employment: No implied term protecting employees from "stigma"

This report relates to 1 case(s)

In Re BCCI SA the High Court rejects the claims of dismissed senior employees of the Bank of Credit and Commerce International to damages for the loss they had suffered as a result of the stigma attached to having worked for the bank. The Court holds that established case law precludes the recovery of such damages. Moreover, no express or implied term in the employees' contracts protected them from the employer conducting business in such a way as to prejudice their future prospects of employment, since an employer is not obliged to prepare its employees for work with future employers. The Court also holds that in calculating the wages due for the final days of employment, it was necessary to first establish the monthly payment due and then to apportion this from day to day.