What is the significance of this development for the law of employment generally?
Essay on Contract of employment Contract of employment To what extent does the law impose on both parties to the contract of employment Mutual trust confidence essays implied duty of trust and confidence?
What impact does this implied term have in the areas of constructive, wrongful and unfair dismissal? The employment relationship constitutes an intimate and important contract between employer and employee. It is relationship that serves to underpin commercial life and activity in any market economy and as such it is hard to overstate its profound socio-economic significance.
This short paper first considers the law relating to the duty of trust and confidence which is implied in every contract of employment, then examines the impact of that implied term in the context of dismissal. The implied duty of trust and confidence The duty of trust and confidence is imbedded into the contract of employment to ensure that each party to a contract of employment does not, without justification, behave in a manner that is likely to damage or destroy the crucial relationship of confidence and trust that should exist between an employer and an employee.
For example, in Bliss v South East Thames Regional Health Authoritya demand that an employee submitted himself to a psychiatric examination was deemed to be an act calculated to destroy the said relationship of trust and confidence. The duty overlaps and complements the concept of fair dealing owed by the employer.
This duty contributes little to the duty of fidelity that an employee owes to an employer and which overlays the employment relationship, in particular in light of the sensitive commercial information which may be at the disposal of the employee, but it is specified as a specific duty in light of the many scenarios that can bring it to the fore.
In practice the implied duty of trust and confidence probably more often litigated than the other implied terms in an employment contract. It is important to note that this is a mutual duty, meaning that both the employer and the employee are obligated to treat each other respectfully.
There are many examples of what might constitute a breach of the duty of trust and confidence and some of these feature below: A failure to investigate a justified complaint from an employee A good example of the interpretation and application of this duty can be found in United Bank Ltd v Akhtar.
In this case an employee was subject to a mobility clause which provided that he was liable to be transferred to any place in the United Kingdom in which his employer operated at short notice and with only the possibility of a discretionary relocation payment.
It transpired that the employee was asked to move from Birmingham to Leeds with just a few days notice albeit the employer was aware the employee was suffering difficult personal circumstances. The court held that this amounted to a breach of the implied duty that employers will conduct themselves in a manner that does not harm the delicate relationship of trust and confidence.
On the other hand employers may be moved to cite such a breach either as a reason for the imposition of disciplinary action or to justify the dismissal of the employee. Where there has been a breach of implied duty of confidentiality an employer may also be moved to seek an injunction against the employee to prevent further breaches.
The obvious inference to be drawn from this ruling is that employees are only entitled to bring common law claims for damages for breach of an implied term of trust and confidence in connection with the behaviour of their employer prior to dismissal. The rationale behind this ruling is that claims in relation to dismissal itself can only be brought under the unfair dismissal scheme.
However, the Lords did state that the duty of trust and confidence should have as much bearing on an employer exercising his power to dismiss as it does when the employer carries on a continuing employment relationship. It is submitted that there is an anomaly or at least an inconsistency in the current law, given that there is a duty to act in good faith and with fairness in applying the implied duty in circumstances when an employer is deliberating as to whether to suspend an employee but not in circumstances when the employer is considering taking the more serious decision to dismiss the employee.
It is submitted that it would be a natural development of the implied duty of trust and confidence to incorporate within it an obligation only to dismiss employees fairly and in good faith. The Eastwood decision thus reopens the prospect of employees bringing common law claims seeking damages for unfair termination of their employment.
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About this resource This Law essay was submitted to us by a student in order to help you with your studies.The trustee, who is usually appointed in the trust deed, manages the trust on behalf of the beneficiaries and is held accountable by being subject to fiduciary duties.
A beneficiary is the person who benefits from the fiduciary relationship between the trustee and themselves. Mutual trust is a responsibility to each other; it is something to put on your confidence to a person’s qualities and perceives the reality of truth.
Mutual trust is also a commitment to both person whom they put they trust on, sometimes it is being without verification and a charge of acceptance. These characteristics include: virtue, love, empathy, honesty, kindness, altruism, mutual understanding, compassion, trust, and appreciation of each other’s friendship, to convey one’s feelings, and make faults without the anxiety of being judged by friends.
Two such terms with this effect are: mutual obligation of trust and respect 16 and the employer's duty to take reasonable care of the employee's health and safety. 17 By virtue of S. 2 of the Unfair Contract Act , the duty to take reasonable care cannot be excluded by contract.
Mutual trust and confidence in contracts of employment | Example Law Essay This essay was produced by one of our professional writers as a learning aid to help you with your studies Example Law Essay Mutual Trust and Confidence in Contracts of Employment In order to answer this question one must first assess and consider the law relating to the.
Rating: Strong Essays. Open Document. Essay Preview. Employment Law Introduction; "To what extent does the obligation to maintain mutual trust and confidence ensure fair dealing between the employer and employee in respect of disciplinary proceedings, suspension of an employee and.