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In English law, an employment contract is a specific kind of contract whereby one person performs work under the direction of another. The two main features of a contract is that work is exchanged for a wage, and that one party stands in a relationship of relative dependence, or inequality of bargaining power.
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 ...
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 .
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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 issue arises because, in British law, a contract of employment consists of both expressed and implied terms. [1] Implied terms can arise through "custom and practice". Historically, alteration of these terms has been by negotiation and collective bargaining.
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 ...
Part 4 – The Terms of Contract Chapter 12 – Express Terms, Chapter 13 – Implied Terms, Chapter 14 – Exemption Clauses, Chapter 15 – Unfair Terms in Consumer Contracts; Part 5 – Illegality and Public Policy: Chapter 16 – Illegality and Public Policy; Part 6 – Joint Obligations, Third Parties, and Assignment
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