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Implied terms, mutual trust and confidence Malik and Mahmud v Bank of Credit and Commerce International SA [1997] UKHL 23 is 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 contracts of employment .
Terms implied "in law" are confined to particular categories of contract, particularly employment contracts or contracts between landlords and tenants, as necessary incidents of the relationship. For instance, in every employment contract, there is an implied term of mutual trust and confidence, supporting the notion that workplace relations ...
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Secretary of State for Employment v Associated Society of Locomotive Engineers and Firemen (No 2) [1972] ICR 19 is a UK labour law case concerning the contract of employment. It held that there is an implied term of good faith in an employment contract, and if the employer withdraws this, it is a breach of contract.
The House of Lords held that the employers had breached a contractual duty, implied into the employment contracts, to properly inform their employees about their rights. Lord Bridge, distinguished terms implied ‘in fact’ to reflect the parties’ unexpressed common intentions and those implied ‘in law’. He went on as follows.
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 ...
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