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Discussion of the Development and Significance of the Implied Duty of Mutual Trust and Confidence - Essay Example

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Discussion of the Development and Significance of the Implied Duty of Mutual Trust and Confidence Name: Course: Tutor: Date: 2211 words Overview In an employment contract, the employer subjected to the implied term of mutual trust and confidence. This forms part of the obligations of the employer1…
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Discussion of the Development and Significance of the Implied Duty of Mutual Trust and Confidence
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Download file to see previous pages It is the most powerful rule in the modern law of employment contracts. It has thus formed the pillar of the legal construction of employment contacts. The implied duty has formed part of the law of the contract of employment for over 70 years2. It has established as a duty used, by courts, to compel the employers to conduct themselves carefully. This essay focuses on the development and Significance of the Implied Duty of Mutual Trust and Confidence. It will also consider juridical nature, content and wide duty of trust and confidence. Implied Terms in the Contract of Employment The implied terms enable the courts to achieve justice between the employer and the employee. These terms apply using the ‘officious bystander’ test or using the law test. In the officious Bystander’ Test, the courts do not depend on the statutory requirement3. It implies terms which haves not been expressly agreed by the parties. A case law applies in the Moorcock case six. While the parties bargained, the bystanders suppressed the whole thing saying, ‘Oh, of course’. Terms Implied by Law apply in cases where a contractual term implied on the basis and not on the intention of the parties4. They depend on the nature of the contract. This applied in Becton, Dickinson Ltd v Lee 10. The Court held that an implied term read into every contract of employment on conditions of notices of termination’ the notices should allow adequate time to terminate the contract. In either case when determining the judgments the ruling authority influenced by the express and implied contractual terms agreed by the parties. The case of Courthaulds Northern Textiles Ltd in the late 1970’s implied a duty formulated. Employers should not behave in a way likely to damage the trust and confidence between the parties. The House of Lords, however, rejected the decision and asked a consideration in the case in which an employer was conducting a corrupt and fraud business. The plaintiffs in that case had not been involved in the corruption but suffered financial losses and harm to their reputations. Their employment terminated for redundancy as the bank liquidities due to corruption and dishonest allegations. The plaintiffs declared how difficult it was for them to find other jobs. This was not their wrong doing anyway but due to the implied term of confidence. They sought ways to recover their losses without success. Their reputations damaged especially in the financing sector. The House of Lords said that the employer’s conduct was a breach of duty to ensure trust and confidence, which affected an employee’s future employment prospects. Lord Nicholls and Lord Steyn said that if one agrees to work with an employer, them cases of dishonest and fraud not tolerated. In case one found guilty of such cases then, he or she dismissed immediately. A breach of this term characterized with a reputation that leads employees into resigning or terminating their contract. Employees rely, on the implied term of mutual trust and confidence, to get greater damages than those traditionally available for breach of contract5. In Addis v Gramophone Co Ltd23, the House of Lords said that the employee could not recover damages if dismissed for wrong behaviors as theft or corruption. The Chief Justice, Kennedy, objected and said that breach of contract damages given to cover up disappointment of mind and humiliation and the fact of the possibility of employee’ ...Download file to see next pagesRead More
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