L3. Mutual Trust and Confidence PDF

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Employment Law, Lecture 3...

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Terms of The Contract (Lecture 3) Implied Terms There are two types of implied term: statutory implied terms and common law implied .terms An implied term is something so obvious that it would’ve been agreed by both parties . that there is no need to include it in the contract The test for an officious bystander comes from the case of Shirlaw v Southern [Foundries [1926 The test for ‘business efficacy’ comes from the case Reigate v Union Manufacturing Co [Ltd [1918 Implied Term of Mutual Trust and Confidence [United Bank Ltd v Akhtar [1989 we take it as inherent that there may well be conduct which is either calculated “ or likely to destroy or seriously damage the relationship of trust and respect between employer and employee . . . we consider that in the field of employment law it is proper to imply an overriding obligation of trust and respect which is independent of, and in addition to, the literal interpretation of the actions which are permitted to the employer under the terms of the contract” - per Knox J, at 512 It was held in this case that the Bank had breached the implied terms that there is an obligation of trust and respect. e.g. if a lecturer came into work wearing a t-shirt saying “I hate NTU”, although that isn’t in the contract, he .would be in breach of an implied term [Malik v BCCI [1997 A bank was acting corruptly, and Malik wasn’t best pleased. Nowhere in the contract did it say that the bank cannot act corruptly, but that is also a breach .of an implied term [ Bournemouth University Higher Education Corporation v Buckland [2010 Head of marking for the exam papers altered all of the grades the professor had marked without consulting him at all. The Court of Appeal held that this was a . breach of the obligation of trust and respect Blackburn v Aldi Stores Ltd The store manager started swearing at an employee in front of customers and other staff. This is an another example of a breach of the obligation of trust and .respect Important Remaining Issues ?Does this implied term mean that the employer has to act reasonably Normally, yes, but companies don’t like the implied term. Most things will go under the radar but some things are so unreasonable they breach the implied .term of trust and respect [White v Reflecting Roadstuds [1991 Implied Duties of the Employer

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Employers have the duty to take reasonable care of the employee...