Breach of Contract Claims for Senior Executives

Breach of Contract Claims for Senior Executives

In the realm of employment law, a breach of contract occurs when either an employer or an employee fails to uphold a contractual obligation. For senior executives, whose contracts often contain complex and high-value terms, breach of contract claims can involve substantial financial and reputational consequences.

At The Jonathan Lea Network, we specialise in advising senior executives on all aspects of breach of contract claims, ensuring their legal rights are enforced and respected. From unpaid bonuses and contractual benefits to wrongful dismissal and constructive dismissal claims, our team brings both legal expertise and strategic insight to resolve disputes efficiently and favourably.

Understanding Employment Contract Terms

Before considering the nature of a breach, it is essential to understand the components of an employment contract. These are typically split into:

Express Terms

These are terms that are clearly stated—either in writing or orally. For senior executives, express terms commonly include:

● Salary and bonus structures

● Notice periods and termination provisions

● Share options and equity incentives

● Holiday entitlement

● Job title and duties

● Confidentiality clauses

● Restrictive covenants (e.g., non-compete clauses)

● Benefits such as company cars, private healthcare, and pension contributions

These terms are often found in the executive’s contract of employment, offer letter, and ancillary documents like bonus scheme rules.

Implied Terms

These are not written down but are legally recognised as part of the contract. They arise from:

• Custom and Practice – where a consistent approach (e.g. a year-end bonus) becomes an expected part of the employment relationship.
• Statute – e.g., right to the National Minimum Wage, working time regulations, and a safe working environment.
• Necessity – e.g., the need for a travelling sales executive to hold a valid driving licence.
• Mutual Trust and Confidence – an essential implied term, requiring both employer and employee to behave in a way that does not destroy the trust in their relationship.

Typical Breach of Contract Claims Against Employers

Senior executives may pursue breach of contract claims in either the Employment Tribunal (for claims capped at £25,000 and arising during employment) or the civil courts (for higher-value or post-employment breaches). Here are the most common forms of employer breaches:

1. Wrongful Dismissal

This occurs when an executive is terminated without the notice specified in their contract or without payment in lieu where applicable.

Examples:

● Dismissal without cause or proper notice

● Ignoring a contractually binding disciplinary process

Key Point: Damages covering lost salary, benefits, and bonuses for the notice period.

2. Unpaid Bonuses and Wages

Failure to pay contractually agreed bonuses, expenses, or salary is a breach of express terms.

Examples:

● Non-payment of a guaranteed or formula-based bonus

● Unauthorised deductions from pay

● Refusal to reimburse legitimate expenses

Key Point: Employers can only make deductions where expressly allowed by the contract or with the employee’s written agreement.

3. Constructive Dismissal (Breach of Mutual Trust and Confidence)

If an employer behaves in a way that fundamentally breaches the implied duty of mutual trust and confidence, the executive may resign and claim constructive dismissal.

Examples:

● Unjustified demotion

● Unilateral pay cuts or job role changes

● Harassment, bullying or poor treatment by colleagues or management

● Failure to support the executive in carrying out their role

Key Point: The breach must be serious, and the executive must resign promptly in response.

4. Denial of Contractual Benefits

Executives often have complex benefits packages. Withholding any of these—where they are a contractual right—amounts to a breach.

Examples:

● Failure to provide private health cover

● Denial of stock options

● Refusal to provide agreed relocation allowance, car, or housing

5. Unilateral Changes to the Contract

Where an employer imposes significant changes without the executive’s consent or a contractual right to do so, the breach may be repudiatory.

Examples:

● Forcing relocation to a new office without consent

● Reducing working hours or pay

● Altering reporting lines in a way that undermines status or authority

Key Point: Such changes may justify resignation and a claim for constructive dismissal.

6. Breach of Other Express Terms

This covers any failure to observe express clauses not already listed.

Examples:

● Breach of a contractual grievance or disciplinary process

● Failure to follow the bonus scheme mechanism

● Violating confidentiality or data protection obligations

Remedies Available

Breach of contract claims can result in a range of legal remedies:

Damages – the most common remedy. Intended to compensate the executive for financial loss caused by the breach.

Specific Performance – A rare remedy, usually ordered to enforce post-termination restrictions or share option rights, requiring a party to perform their contractual obligations.

Injunctions – Used to prevent unlawful conduct—e.g., stopping an employer from terminating an option scheme unfairly or enforcing a restrictive covenant improperly.

Declaratory Relief – A court declaration about the interpretation of contractual terms or rights, often helpful in resolving disputes over ambiguous clauses.

Why Choose Us?

At The Jonathan Lea Network, we understand the unique challenges faced by senior executives when employment contracts are breached. Here’s why clients trust us:

● Specialist Employment Law Knowledge

Our solicitors are highly experienced in executive-level employment disputes. We routinely advise on seven-figure packages, high-stakes disputes, and nuanced contractual arrangements.

● Strategic Approach

We go beyond black-letter law, assessing the commercial context and reputational considerations. Whether you’re negotiating an exit or enforcing contractual entitlements, we provide practical and discreet advice tailored to your objectives.

● Strong Litigation and Negotiation Track Record

We have successfully brought and defended breach of contract claims in both Employment Tribunals and the High Court. Our lawyers are skilled negotiators who regularly secure favourable settlements for our clients—often without the need for litigation.

● Clear, Transparent Advice

We pride ourselves on offering clear, jargon-free guidance, explaining your legal position and options in a straightforward manner. We also offer flexible pricing options, including fixed fees and staged billing, where appropriate.

Contact Us

If you are a senior executive facing a breach of contract issue—or considering bringing a claim—do not delay seeking advice.

Our experienced employment law solicitors are ready to help you assess your rights and take appropriate action. Whether you are negotiating a settlement, preparing a claim, or navigating complex contractual terms, we are here to support you every step of the way.

📞 Call us on 01444 708640

📧 Email us at wewillhelp@jonathanlea.net

🗓️Or fill out our contact form to request a free 20-minute consultation.

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