Employment and Labor Law

High Court rejects ‘Trojan’ term of mutual trust and confidence

Contact: Stephen Hughes, Special Counsel and Lara Radik, Associate; Carter Newell (Queensland, Australia)

In a decision handed down on 10 September 2014, the High Court has held that there is no implied duty of mutual trust and confidence in the terms of employment in Australia. The decision in Commonwealth Bank of Australia v Barker [2014] HCA 32 will be welcomed by employers who can now confidently rely upon the terms of contractual agreements and industrial instruments without fear of an overarching, ill-defined duty of mutual trust and confidence being implied by an Australian Court retrospectively.

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