Mutual trust and confidence is a phrase used in

English law English law is the common law legal system of England and Wales, comprising mainly criminal law and civil law, each branch having its own courts and procedures. Principal elements of English law Although the common law has, historically, be ...

, particularly with reference to contracts in UK labour law, to refer to the obligations owed in an employment relationship between the employer and the worker. This concept relates to a new but highly important concept in employment law, and constitutes a term that is implied into all employment contracts. The implied term means that both the employer and employee should behave in such a way as to not undermine the employment relationship. Academics now talk of the duty of good faith in the employment relationship. (i.e. both parties should "look out" for each other) It is such an important issue that this implied term can override (in certain circumstances) an express term of the employment contract. e.g. excessive hours for junior doctors (See the Court of Appeal decision in '' Johnstone v. Bloomsbury Health Authority'')

Cases

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Mahmud and Malik v Bank of Credit and Commerce International SA ''Malik and Mahmud v Bank of Credit and Commerce International SA'' 997UKHL 23is a leading English contract law and UK labour law case, which confirmed the existence of the implied term of mutual trust and confidence in all Contract of employmen ...

998 Year 998 ( CMXCVIII) was a common year starting on Saturday (link will display the full calendar) of the Julian calendar. Events By place Europe * Spring – Otto III retakes Rome and restores power in the papal city. Crescenti ...

AC 20 *''

Wilson v Racher ''Wilson v Racher'' 974ICR 428 is a UK labour law case concerning constructive dismissal. It serves as an example of an employer being found to have wrongfully dismissed an employee, because of the employer's own bad behaviour. Edmund-Davies L ...

974 Year 974 ( CMLXXIV) was a common year starting on Thursday (link will display the full calendar) of the Julian calendar. Events By place Europe * Battle of Danevirke: Emperor Otto II defeats the rebel forces of King Harald I, who has ...

ICR 428 *''

The Post Office v Roberts ''The Post Office v Roberts'' 980IRLR 347 is a UK labour law case, concerning mutual trust and confidence. Facts Ms Roberts claimed that her employer breached a duty of mutual trust and confidence. A Post Office supervisor, Mr O’Keefe, wrote o ...

980 Year 980 ( CMLXXX) was a leap year starting on Thursday (link will display the full calendar) of the Julian calendar. Events By place Europe * Peace is concluded between Emperor Otto II (the Red) and King Lothair III (or Lothair IV) a ...

IRLR 347 *''

Transco plc v O'Brien is a UK labour law case concerning the contract of employment. Facts Mr O’Brien worked through an employment agency. He moved to an hourly wage. Transco announced it would give better terms to a 70 strong workforce, except Mr O’Brien, who i ...

002 002, 0O2, O02, OO2, or 002 may refer to: Fiction *002, fictional British 00 Agent *''002 Operazione Luna'', *1965 Italian film *Zero Two, a ''Darling in the Franxx'' character Airports *0O2, Baker Airport *O02, Nervino Airport Astronomy *1996 ...

EWCA Civ 379 *''

Eastwood v Magnox Electric plc ''Eastwood v Magnox Electric plc'' 004UKHL 35is a UK labour law case concerning damages for wrongful dismissal, which were held to not be limited if a breach of contract occurs during the performance of the contract, rather than at the point of ...

004 004, 0O4, O04, OO4 may refer to: * 004, fictional British 00 Agent * 0O4, Corning Municipal Airport (California) * O04, the Oversea-Chinese Banking Corporation * Abdul Haq Wasiq, Guantanamo detainee 004 * Junkers Jumo 004 turbojet engine * Lauda ...

UKHL 35 *''

Mallone v BPB Industries plc ''Mallone v BPB Industries plc'' 002EWCA Civ 126 is a UK labour law case, concerning control of an employer's discretion. Facts Mr Giovanni Mallone claimed compensation for BPB plc unreasonably withdrawing his share options after being dismissed ...

EWCA Civ 126 *''

Luke v Stoke-on-Trent City Council ''Luke v Stoke-on-Trent City Council'' 007EWCA Civ 761is a UK labour law case, concerning the test for an implied term. Facts Mrs Beryl Luke was a special needs teacher for Stoke. She had a dispute with the headmaster and went off sick from Oc ...

007 The ''James Bond'' series focuses on a fictional British Secret Service agent created in 1953 by writer Ian Fleming, who featured him in twelve novels and two short-story collections. Since Fleming's death in 1964, eight other authors have ...

EWCA Civ 761

Australia

In 2014 the

High Court of Australia The High Court of Australia is Australia's apex court. It exercises Original jurisdiction, original and appellate jurisdiction on matters specified within Constitution of Australia, Australia's Constitution. The High Court was established fol ...

unanimously and firmly rejected the proposition that contracts of employment in Australia should contain an implied term of mutual trust and confidence. The court left open the question whether there is a general obligation to act in

good faith In human interactions, good faith ( la, bona fides) is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. Some Latin phrases have lost their literal meaning over centuries, but that is not the case ...

in the performance of contracts and the related question whether contractual powers and discretions may be limited by good faith and rationality requirements..''Commonwealth Bank of Australia v Barker''
Judgement summary
at High Court of Australia website.

Notes

{{reflist, 2 United Kingdom labour law

Cases

Australia

See also

Notes