Employment Update April 2014

An employer's casual assurances or promises to employees during separation discussions may considerably reduce the employer's rights and remedies.

Introduction

The case of Igal Dafini v CMA CGM SA is a useful reminder that if an employer secures the agreement of a departing employee to some request or proposal of the employer – in this case a resignation to avoid embarrassment for both parties – and does so by giving specific assurances or promises, the employer may be prevented from relying on rights it would otherwise have.

Facts

In the above case, the employee was engaged under an agreement for a fixed term and entitling him to a profit share during the full length of the period. The fixed term was 3½ years.