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Trust and confidence meaning

What does Trust and confidence mean?
In employment practice, trust and confidence describes the mutual expectation that neither employer nor employee will, without reasonable and proper cause, act in a way likely to destroy or seriously damage the working relationship. In England & Wales, Scotland and Northern Ireland, this is an implied contractual term developed by case law (not statute). In Ireland, the courts have similarly recognised an implied duty of mutual trust and confidence; it is not codified but applied through case law and the Unfair Dismissals regime. Key features and use: - Reciprocal obligation applying to both parties. - A serious breach is typically repudiatory and often underpins constructive dismissal claims (Employment Tribunal; WRC/ Labour Court in Ireland), as well as wrongful dismissal or injunction applications. - Guides lawful handling of suspensions, disciplinary and grievance processes, investigations, performance management, confidentiality, and workplace bullying/harassment. - Employers may take robust management action, but must have reasonable and proper cause and act fairly; employees must not act in ways that seriously undermine the relationship. Practical significance: arbitrary suspension, bad‑faith allegations, sustained bullying, or unfair procedures may breach the term; reasonable, procedurally fair decisions usually do not. Usage and effect are broadly consistent across the UK and Ireland, though remedies and forums differ.
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NEWS
Phoenix v The Open University: Employment Tribunal finds discrimination and harassment over gender-critical beliefs; colleagues' open letter a 'call to discriminate', with breach of trust and confidence

On 22 January 2024, Employment Judge Jennifer Young concluded that Open University academics instigated a 'call to discriminate' against Professor Jo Phoenix by issuing an open letter opposing her gender-critical research network. That discriminatory letter in turn also triggered a 'pile-on' directed at Phoenix, Judge Young expressly observed. Phoenix v The Open University (ET/3322700/2021 & 3323841/2021) The judge found the university failed to secure an appropriate working environment for Phoenix, leaving her to weather the backlash within the institution. This failure amounted to a breach of the implied term of trust and confidence in her contract and ultimately prompted her resignation. According to Judge Young, the Open University did not shield Phoenix from the 'negative campaign' that followed thereafter the launch of her research network because it 'did not want to be seen to give any kind of support to academics with gender critical beliefs'. Phoenix had been employed as a professor from 2016 until she stepped down in December 2021, following what she described as an 'exceptionally...

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NEWS
UK corporate crime weekly: Post Office exoneration bill, SFO outlook, sanctions/AML guidance, Online Safety Act cooperation, environmental penalties, FCA fines, ECCTA updates—11 January 2024

In this issue: Investigating criminal conduct Criminal procedure and evidence Appeal and judicial review Bribery, corruption, sanctions and export controls Cybercrime and data protection offences Environmental offences Fraud, forgery, tax and theft offences Financial services and pensions offences Health and safety and corporate manslaughter offences Local authority prosecutions Money laundering International LexTalk®Corporate Crime: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Investigating criminal conduct Comment—UK regulators help build trust in AI by using it themselves, but more will be needed Public confidence in artificial intelligence in the UK is faltering, with the government slow to legislate and anxieties about extreme misuse taking centre stage. Yet key regulators are leading by example, adopting AI in projects that begin to confront everyday harms people face, from fraud to privacy threats, which could rebuild trust. Even...

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NEWS
Water (Special Measures) Act 2025: governance, liability, penalties, monitoring, cost recovery and special administration reforms for water undertakers in England and Wales

Context The Water (Special Measures) Act 2025 (W(SM)A 2025) was brought before Parliament on 4 September 2024 and attained Royal Assent on 24 February 2025. It stems from broad dissatisfaction with the behaviour and performance of water and sewerage undertakers across England and Wales. Public trust has been undermined by repeated pollution control failures, chronic underinvestment in infrastructure, and the awarding of executive bonuses. In 2022–2023, £9.7m in bonuses and benefits went to senior executives, even as serious pollution incidents increased. Four companies were responsible for over 90% of those incidents. Ofwat research found only a quarter of customers believed water companies act in the public interest. In response, the government pledged legislation to hold poor performers to account, bolster regulatory powers, and start restoring confidence. W(SM)A 2025 is presented as the first step in a broader, continuing reform programme. Key provisions Remuneration and governance W(SM)A 2025 gives Ofwat the authority to stop water companies granting performance-related bonuses where minimum performance thresholds are missed. In setting...

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PRACTICE NOTES
SRA Publicity and Marketing Requirements for Solicitors’ Firms: accuracy, pricing transparency, regulatory status, no win, no fee, public approaches, complaints, third‑party marketing (England and Wales)

This Practice Note is aimed at law firms. It encapsulates the publicity obligations in the SRA Standards and Regulations, together with associated SRA guidance and warning notices. In essence, you must ensure that any publicity about your practice accords with the SRA Principles, particularly by acting in a manner that sustains public trust and confidence in the solicitors’ profession and with honesty and integrity. When delivering services to the public, or a section of it, you must also ensure that publicity about your practice is accurate and not misleading, including any statements about your charges and the situations in which interest is payable by or to clients. There are additional requirements concerning letterheads, how staff are described, your regulatory status, and price and service information, etc, which apply more broadly. See also Precedent: Publicity policy—law firms. What is publicity? Publicity includes: all promotional material and activity, including the name or description of your firm stationery advertisements brochures websites directory entries...

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PRACTICE NOTES
Conduct, duties and liability of the mediator: contract and negligence, limitation clauses, codes of conduct, and role before and during mediation, including settlement drafting

This Practice Note examines the mediator’s potential exposure for failing to uphold duties owed to the parties. It also identifies any applicable codes of conduct and reviews the mediator’s function across the mediation, including drafting any settlement terms. As a central figure in the process, the mediator must earn the parties’ trust and inspire confidence if the mediation is to succeed. For guidance on appointing a mediator, see Practice Note: Choosing a mediator. Basis of mediator liability—contract and/or negligence Typically, a mediation agreement will be in place, and the mediator may incur liability to the contracting parties for breach, subject to any contractual limits. Confidentiality clauses commonly appear in such agreements, and a breach by the mediator could give rise to liability. For assistance with preparing the mediation agreement, see Practice Note: Organising a mediation. For discussion of limiting the mediator’s liability, see: Mediation agreement—limiting mediator’s liability. For an overview of breach of contract and remedies, see: Contractual breach damages and remedies—overview...

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PRACTICE NOTES
Offshore Trusts: Advantages, UK Tax Anti-Avoidance and AML Constraints, Settlor-Reserved Powers, Asset Protection, Succession Planning, Costs and Common Pitfalls

A straightforward way to describe an offshore trust is one in which the trustees are based in a low- or zero-tax territory. Those with UK links include the Crown Dependencies—Jersey, Guernsey and the Isle of Man—and the Overseas Territories of Bermuda, the British Virgin Islands, the Turks and Caicos Islands, the Cayman Islands and Gibraltar (collectively the ‘CDOTs’). As a result, offshore trusts are frequently linked to potential tax efficiencies, though the personal tax circumstances of the settlor and any beneficiaries must also be taken into account. They can also confer benefits that are unrelated to tax planning. Confidentiality and anonymity At common law, trustees are obliged to keep the business of the trust confidential, a duty grounded in the general law on breach of confidence. Courts have examined this obligation in various decisions, commonly in the context of providing information to beneficiaries or responding to enquiries from international regulators. While significant, the duty is not absolute. Courts in offshore jurisdictions retain an inherent supervisory role over trust...

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PRECEDENTS
Employment Tribunal (ET1) para 8.2 precedent: grounds of claim for sex discrimination, sexual harassment, victimisation and constructive unfair dismissal (Equality Act 2010, England, Wales and Scotland)

[ Insert in para 8.2 of claim form ET1: ] The Respondent engaged the Claimant as a [ job title ]. She was based at the Respondent’s premises at [ insert address ], where she was one of only three women employed. [ It was an implied term of the Claimant’s employment contract that the Respondent would not behave in a way calculated or likely to erode the mutual trust and confidence between employer and employee. ] The Claimant contends that the Respondent subjected her to [ a course of ] discrimination, sex-related harassment, harassment of a sexual nature, and victimisation, which encompassed discriminatory and constructive unfair dismissal. On or around [ insert date ], her colleague, [ insert name ], asked her to send him certain sales reports. She informed [ insert name ] that she was in the process of compiling the figures and would supply the full report after lunch. He replied, ‘No need to bite my head off. Is it that...

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PRECEDENTS
UK direct marketing compliance policy: GDPR, DPA 2018 and PECR 2003—lawful bases, consent/soft opt-in, channel rules (post, telephone, electronic mail, social media), suppression lists, objections and governance

1 Introduction 1.1 This direct marketing policy is for members of staff engaged in direct marketing activities. It offers high-level guidance on data protection law relevant to direct marketing and sets out the internal procedures we have put in place to ensure we comply with the law. 1.2 Direct marketing is significant. It is a core part of our business operations and can help our business to grow. It can also enhance the customer experience by making people aware of new products and services they may value, and by giving them opportunities to participate in events or take up offers. 1.3 That said, direct marketing can create nuisance for people and, in some instances, may even lead to distress. 1.4 We conduct our business with integrity and in an ethical way. We are committed to ensuring our direct marketing complies with the data protection regime and is undertaken responsibly. As well as supporting business growth, practising ethical direct marketing will strengthen trust and confidence in our...

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PRECEDENTS
UK GDPR: Data Protection by Design and Default—Organisational Policy, Governance and Procedures (DPIA/PIA Lifecycle, Data Minimisation, Anonymisation, Retention, Rectification and Security)

Data protection by design and default—the concept Data protection by design and default (DPbDD) is mandated by the UK General Data Protection Regulation (UK GDPR). In short, DPbDD requires us to consider privacy and data protection from the outset in all we do. We therefore embed data protection within our processing and business practices, from initial design through the whole lifecycle. Taking a DPbDD approach when designing or reviewing projects, policies, products or systems: will support compliance with many other provisions of the UK GDPR; can lower long‑term costs by avoiding major future redesigns when data protection issues emerge; can bolster user trust and confidence; can improve our chances of meeting procurement criteria in regulated markets such as healthcare; can help convince other organisations to work with us. DPbDD—key principles We address data protection within the design and implementation of systems, services, products and business...

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