In September 2014, the High Court handed down its judgment in the decision of Commonwealth Bank of Australia v Barker [2014] HCA 32, and comprehensively determined that there is no basis for an implied term of mutual trust and confidence in employment contracts in Australia.
The decision has been welcome news to employer and employer associations, as the implied term had been frequently invoked by employees during employment disputes dissatisfied by the conduct or decisions of employer or managers. The High Court's finding will clearly have lingering influence on employee claims involving allegations of constructive dismissal, or where an employee seeks to challenge performance management or disciplinary processes as unreasonable.
In his article on the decision, Workplace Solutions partner, Peter Punch has provided some further thoughts on the High Court's decision and the likely impact of the loss of the implied term of mutual trust and confidence on employment relationships in Australia. Peter comments on the possible emergence of another implied term in employment contract, namely "the duty of good faith".
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