"5(b)We decided that the (Appellants) were in breach of the implied term in the (Respondent's) contract of employment that they would not so conduct themselves as, on a reasonable analysis, to forfeit her trust and confidence in them. That term as to trust and confidence is fundamental to the contract of employment, to the entire relationship of employer and employee."
"5(c) The management of the Applicant by attacking her confidence and in particular, Mrs Smith's treatment of her, and the Respondents' radical use of unrevealed complaints to block her progress comprised the conduct that together amounted to the breach."
"Between everything, the delay in her promotion, the oppressive treatment by Mrs Smith, the treating her as thought she were not competent, she began to feel disillusioned with the respondents. She had much reason for complaint. Some things she exaggerated: she felt too keenly the deprivation of a superior model of car. But on the whole, she was managed ruthlessly and too severely. It was to be expected that she began thinking of employment with another firm."
"Between everything…she began to feel disillusioned with the Respondents. She had much reason for complaint. Some things she exaggerated…But on the whole she was managed ruthlessly and too severely…"
"4(f)… Mrs Smith wanted urgently to effect a profound improvement in the performance of the branch. She is a strong personality and adopted strong measures. We accepted what the Applicant said about their relationship. The Applicant, with some reason, felt bullied. She was unsympathetically treated over her mother's death. She was put under pressure during her sick leave. (g) Between everything … the oppressive treatment by Mrs Smith…. she began to feel disillusioned with the Respondents. She had much reason for complaint. Some things she exaggerated … but on the whole, she was managed ruthlessly and too severely."
"(d) … it might be expedient for the Respondents to order refunds or to take other action in response to a complaint without telling the Applicant about it; that might amount to sensible customer relations. But as a matter of discipline, before the complaints count against an employee potentially to the destruction of her career prospects in the financial sector, she should be told of the complaint and her defence should be considered. The general principle is obvious and simply. An employee does not need to be excessively sensitive or vulnerable to lose trust and confidence if an employer breaches it."
"The purpose of this bulletin is to give members information about conclusions reached by LAUTRO in the context of its enforcement work which may be of interest to the Membership as a whole … The bulletin does not form part of the rules… Section 2 – The Seeking and Provision of References between Members… 2.01 LAUTRO is often asked about references in situations where Member A is considering appointing a company representative currently or formerly with Member B. What information should A request of B in order to comply with the requirements of Rule 3.5(1)? … 2.03 These are ultimately decisions for Members themselves to make in the context of the requirement in Rule 3.5(1) to satisfy themselves as to the good character and competence of an applicant and, in Rule 3.5(2), to make known all relevant matters."
"2.04…the following is a list of what LAUTRO would regard as the types of question which need to be addressed in order to provide the minimum information of a factual nature which is necessary to satisfy either Rule… (f) Complaints (i) How many over what time period? (ii) How many have resulted in compensation being paid to investors?… (h) Discipline (i) Has the CR ever been formally reprimanded or disciplined for breach of the LAUTRO rules?…"
"4(i) Those revealed that 17 complaints have been made against (the respondent) of which 4 were upheld and 8 were outstanding. This was too much for the Prudential who declined to employ her. She was amazed. She only knew of 2 complaints and she was happy that she had answered those. (j) The Applicant had performed well and capably. But here were the Respondents producing a record that looked bad and included matters she did not know had occasioned any comment or action. Several were outstanding. She did not realise that there were any complaints pending against her. She did not understand how untried complaints should be held against her. (k) The Respondents do not make "subjective" statements in references. They confine themselves to factual statements that may be justified from their files. Thus, there was no question of telling the Prudential what the precise nature of the Applicant's offence of forgery was; the recipients of the reference were only told that the Applicant was guilty of "forging a customer's signature on a financial appraisal form"
"The respondents do not…provide references by offering estimates of [employees'] skills or qualities. They provide only what regulations require them to provide, without considering whether the regulations barely observed are not in particular cases misleading. This restrictiveness certainly misled the Prudential…"
"…before the complaints count against an employee …she should be told of the complaint and her defence should be considered"
"Thus an employee might accumulate a disciplinary record without realising it. The record might become irrevocably fatal to her prospects of employment in the financial industry (as it did in the Applicant's case)."
"We decided that the Respondents were in breach of the implied term … that term as to trust and confidence is fundamental to the contract of employment."
"The use of unrevealed complaints alone would have amounted to conduct in breach of the terms as to trust and confidence."
"The Respondents' breach of the implied term as to trust and confidence as described above caused the Applicant to leave when she did so. It was a process that had for some time persisted. The revelation of the references was the last straw. It induced her to leave precisely when she did, though she was actively considering leaving in any case. Here was a steady erosion of confidence culminating in a final disintegration."
"Where the relationship between the parties is that of employer and employee, the duty of care could be expressed as arising from an implied term of a contract of employment, ie that if a reference is supplied by the employer for the employee, due care and skill will be exercised by him in its preparation. Such a term may be implied despite the absence of any legal obligation from the employer to provide a reference."