Plaintiff argued that an unjustified suspension from work was a breach of the term of mutual trust and confidence, and argued for compensation to compensate for a psychological injury caused by the suspension.
The false allegation (that Plaintiff had abused children) was likely to destroy or seriously damage the relationship of trust and confidence.
The test for breach of the term was whether “the conduct must be such as to destroy or seriously damage the relationship,” and there was no ‘reasonable and proper cause’ to do this.
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