Post-termination restrictions—the effect of repudiatory breach

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Published by a LexisNexis Employment expert
Practice notes

Post-termination restrictions—the effect of repudiatory breach

Copyright © 2025 LexisNexis

Published by a LexisNexis Employment expert

Practice notes
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A repudiatory breach of contract by the employer will usually mean that any express post-termination restrictions are not enforceable by the employer.

Repudiatory breach

What is required for there to be a repudiatory breach of a contract of employment by an employer is discussed in Practice Note: Constructive dismissal. Essentially, a repudiatory breach will be one that is a significant breach going to the root of the contract of employment, or one that shows that the employer no longer intends to be bound by one or more of the essential terms of the contract.

If the contract is terminated by the employee accepting that repudiatory breach, the termination is usually referred to as a constructive dismissal.

Dismissal by an employer without giving the period of notice required by the employee’s contract of employment, ie wrongful dismissal, is also likely to amount to a repudiatory breach by the employer (see Wrongful dismissal—overview).

However, there will be no repudiatory breach or wrongful dismissal where the terms of the contract expressly permit the employer to give pay in lieu of notice

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United Kingdom
Key definition:
Repudiatory breach definition
What does Repudiatory breach mean?

A repudiatory breach is a breach of contract that goes to the very core of the contract and gives the innocent party the right to treat the contract as being disregarded and entitling the innocent party to refuse to be bound by its terms.

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