An employer was found to be in breach of the implied terms of mutual trust and confidence between employer and employee when it gave him a false reason for terminating his employment.
The employee was told that he was being dismissed due to a work re-organisation. However, the real reason for dismissal was the employee’s performance.
Ironically, the employer did not have to give reasons for dismissal as the employee had only been employed for a few months. However, as soon as the employer decided to give reasons it assumed an obligation not to give misleading reasons to the employee. The employee therefore succeeded in his claim for wrongful dismissal.