The salesman worked for a firm that supplied office equipment and electrical goods.
He found that his customers were sometimes supplied with faulty goods, had orders diverted or were inconvenienced by late deliveries. These errors led to the salesman earning less commission.
His earnings were further reduced when the company removed one of his major accounts.
The salesman resigned and claimed constructive dismissal on the basis that there had been a breach of the implied terms of trust and confidence between him and the company.
The case reached the Employment Appeal Tribunal which found in favour of the salesman.
It rejected the company’s argument that the problems with deliveries were the fault of other suppliers and so beyond its control. The Tribunal also rejected the company’s submission that there were sound business reasons for removing one of the salesman’s major accounts.
It held that the sub-standard service and the removal of the account reduced the salesman’s earning and amounted to a fundamental breach of the implied terms.
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