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Effects of Implied Terms on Contract of Employment

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In Hagen and ors v ICI Chemicals and Polymers Ltd and ors it was held that an employer owes his employees a common law duty of care to keep them adequately informed of the details of changes to their terms of employment which may follow from a company reorganization and can be sued for the tort of negligence if he is in breach of that duty. contractual term covering the matter. In such a case, it is helpful to look at what has happened to other employees in the workplace.

This is because if other employees have been given a right, you can argue that you also have the right under ‘ custom and practice’ .Firstly it should be qualify the “ official bystander’ s test” i. it should prove that the term is so common in the relevant trade or area or so obvious that it must be taken to have been impliedly agreed even though it was not expressed. Secondly it should be oneconfidence" in employment contracts which can generally be automatically implied. In recent years the courts have used the idea of a breach of this implied duty to whittle away at the long accepted principle that an employer has no general contractual obligation to act "reasonably" towards his employees.

This assumption of court explained while giving judgments in the cases like White v Reflecting Road Studs Ltd (5) and Transco plc v O’ Brien. Nowadays the Court has started adhering to the importance of the implied terms in a contract. The court always considers the employer and employee are bound to follow those implied terms in the contract. In recent years, in Mahmud v BCCI (6) the common law has moved to impose certain duties on employers beyond the duty to take reasonable care to protect the physical well-being of his employees.

One example of such an extension is the implied term that an employer will not engage in conduct which is likely to undermine the trust and confidence required if the employment relationship is to continue in the manner the employment contract implicitly envisages. Moreover the courts have developed guidelines as to the circumstances in which they may be prepared to imply terms into a contract of employment.

The courts will not lightly imply a term.  

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preview essay on Effects of Implied Terms on Contract of Employment
  • Pages: 15 (3750 words)
  • Document Type: Essay
  • Subject: Law
  • Level: Undergraduate
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