Bell v Lever Bros

Bell v. Lever Bros (1932) established that a breach of contract alone does not automatically terminate employment if the employee's conduct does not fundamentally undermine the employment relationship. The case involved two executives dismissed for misconduct, but the employer’s decision was challenged. The court ruled that unless misconduct amounts to serious grounds such as fraud or breach of trust, the employer cannot dismiss the employee just to avoid contractual obligations. This case clarifies when an employer can lawfully dismiss an employee without compensation, emphasizing that dismissals based on misconduct must be serious enough to justify ending the contractual relationship entirely.