Marisol's contract entitles her to three months' notice. Her employer discovers that she has been secretly diverting its clients to her own side business, and dismisses her immediately without notice. Which statement about a claim by Marisol for wrongful dismissal is correct?

Correct answer: A) It is unlikely to succeed, because her serious breach of contract (gross misconduct) entitled the employer to dismiss her without notice

Explanation

Wrongful dismissal is a common-law claim for breach of contract, usually dismissal without the notice required by the contract. However, an employee who commits a repudiatory breach, such as gross misconduct involving dishonesty or breach of the duty of fidelity, may be dismissed summarily without notice (Boston Deep Sea Fishing v Ansell; Sinclair v Neighbour). Diverting the employer's clients is a serious breach of the implied duty of fidelity, so summary dismissal is justified. Procedural fairness is relevant to unfair dismissal, not to wrongful dismissal, and constructive dismissal requires the employee to resign.