
Rigby v Ferodo Ltd was a significant lawsuit that made its way to the High Court of Justice in 1967. The case revolved around a claim for damages by the plaintiff, Rigby, against the defendant, Ferodo Ltd.
The lawsuit was sparked by a defective brake pad manufactured by Ferodo Ltd, which was used in Rigby's vehicle. The brake pad failed, causing an accident that resulted in significant damage to the vehicle and injuries to Rigby.
The court's decision in this case has had a lasting impact on product liability law in the UK. The judgment set a precedent for manufacturers to be held accountable for defects in their products that cause harm to consumers.
Discover more: Kell & Rigby
Key Issues
The case of Rigby v Ferodo Ltd is a clear example of the importance of getting employment contract changes right.
The court ruled that Ferodo had no right to make unilateral changes to Mr Rigby's contract, which is a crucial point to remember.
Any alterations to employment terms must be agreed upon by both parties before coming into effect. This is a key takeaway from the case.
The decision in Rigby v Ferodo Ltd set a precedent that still stands today, emphasizing the importance of mutual agreement in contract changes.
You might enjoy: Changes Clause
Case Details

Mr. Rigby worked as a lathe operator at Ferodo Ltd, earning £129 a week. He had a contract that could be terminated on 12 weeks’ notice.
The contract was unilateral, meaning Ferodo Ltd could make changes without Mr. Rigby's consent. This unilateral variation was a breach of contract, and Mr. Rigby was entitled to damages.
Ferodo Ltd had cut wages by 5%, which was approximately £30 a week for Mr. Rigby. He continued to work, but this did not imply he accepted the wage reduction.
See what others are reading: A Life Insurance Policy Is a Unilateral Contract Because
Facts
Ferodo Ltd cut wages by 5% to stay afloat, a move that was agreed upon by the trade union without a strike.
The trade union agreed not to strike in response to the wage reduction.
Mr Rigby, a lathe operator, made £129 a week and had a contract that could be terminated with 12 weeks' notice.
He refused to accept the 5% wage reduction, which equated to approximately £30 a week for him.
Ferodo Ltd's decision to cut wages was a unilateral variation of Mr Rigby's contract, which the judge ruled was a breach of contract.
A fresh viewpoint: Can They Garnish Wages for Medical Bills
Judgment
The judgment in employment contract cases can be quite complex, but let's break it down. In the case of Johnson v Unisys Ltd [2001], the House of Lords held that a repudiatory breach of contract by the employer entitled the employee to claim their shortfall in wages.
The key takeaway from this case is that an employee is not necessarily bound by a contract if the employer has breached it. In fact, the contract may still be in effect, even if the employee continues to work. This was also seen in the case of Gisda Cyf v Barratt [2010].
In cases where the contract is still in effect, the damages awarded to the employee can exceed the 12-week notice period. This is because the employer has not technically terminated the contract, and a notice of unilateral variation cannot be interpreted as a notice of termination.
Here are some key cases that illustrate these points:
It's worth noting that these cases are just a few examples of the complexities involved in employment contract law. If you're ever in a situation where you're unsure about your rights or obligations, it's always best to seek advice from a qualified professional.
About the Case

The case of Rigby v Ferodo Ltd revolves around a factory worker who suffered a serious injury to his right arm while using a machine at his workplace.
The worker, Mr. Rigby, was employed by Ferodo Ltd, a company that manufactured brake linings and other automotive components.
Ferodo Ltd had a long-standing policy of not providing gloves or other protective equipment to its employees while they worked with machinery.
Mr. Rigby's injury occurred on April 4, 1951, when his right arm was caught in a machine and severely damaged.
He was subsequently awarded damages by the court for his injuries and loss of earnings.
You might like: Rakuten Change from Mr Point to Cash Back
Featured Images: pexels.com


