French v Barclays Bank plc
 |
| French v Barclays Bank plc | |
|---|---|
 | |
| Court | Court of Appeal |
| Citation(s) | [1998] EWCA Civ 1092, [1998] IRLR 646 |
| Keywords | |
| Employment contract, mutual trust and confidence | |
French v Barclays Bank plc [1998] EWCA Civ 1092 is a
contract of employment. It held that changing a staff manual can breach the term of mutual trust and confidence
that is implied into every individual contract of employment, and a unilateral change to a workplace practice can breach that contract.
Facts
Mr French was meant to relocate from
Barclays Bank plc said he would get a discretionary interest free bridging loan to let him complete the purchase of a new house before selling the old one. But, sadly, the housing market
collapsed. By October 1989 the valuers said the Radley house was worth £150,000, when he had been trying to sell it for £195,000. The bank changed its policy and withdrew the loan. Mr French argued that withdrawal of the loan was a breach of contract. Lord Lester QC represented Mr French.
Judgment
Waller LJ held that the loan scheme was non-contractual and discretionary. Nevertheless the withdrawal of the scheme was likely to destroy trust and confidence. Accordingly unilaterally changing the workplace practice was a breach of the implied term of mutual trust and confidence.
Walker LJ and Hobhouse LJ agreed.
See also
- UK labour law
- Employment contract in English law
- Autoclenz Ltd v Belcher [2011] UKSC 41