In five judgments dated 25 June 2003, the Supreme Court clarified and revised the rules governing termination of the employment contract by the employer or the employee for breach.
The Supreme Court confirms that where the employer terminates the employment contract for breach or treats the employment contract as repudiated by the employee, it must institute dismissal proceedings. Failing which, the termination would be treated as a dismissal without cause. This principle is now well established.
On the other hand, the Supreme Court has revised its case law delivered on 26 September 2002 regarding constructive dismissal. The Supreme Court has ruled that where the employee terminates the employment contract on the basis that he considers that the employer has failed to comply with its contractual obligations, this form of termination produces the effects of a dismissal without cause where the employer is found to have breached its contractual obligations or alternatively of a
