What Is an Implied Term in a Contract of Employment

What Is an Implied Term in a Contract of Employment

When it comes to employment contracts, there are numerous important terms that govern the relationship between an employer and employee, including terms related to salary, working hours, and job duties. However, there is also an important concept known as an „implied term“ that is often overlooked but can be just as important.

Simply put, an implied term is a term that is not explicitly stated in an employment contract but is still considered to be part of the agreement. These terms are often based on common law principles, industry practices, or other implied agreements between the parties.

There are several different types of implied terms that may be found in an employment contract. For example, there may be an implied term that the employer will provide a safe working environment for the employee, or an implied term that the employee will perform their duties to the best of their ability.

One of the most common types of implied terms in employment contracts is the duty of mutual trust and confidence. This term is based on the idea that an employer and employee are in a relationship of trust, and that both parties should act in good faith towards each other. This duty may be breached if an employer engages in conduct that undermines the employee`s trust and confidence in them, such as unfairly criticizing their work or denying them promotions without justification.

Another important implied term in employment contracts is the duty of good faith. This duty requires both parties to act honestly and fairly towards each other in all aspects of their interactions. For example, an employer may breach this duty if they terminate an employee without cause or if they make false promises about future promotions or benefits in order to induce the employee to accept the job.

It`s important to note that implied terms can vary depending on the specific circumstances of the employment relationship. For example, there may be additional implied terms in a unionized environment or in a contract that has been in place for many years.

In general, however, it`s important for both employers and employees to be aware of the concept of implied terms and to understand how they can impact the employment relationship. If you have any questions or concerns about the terms of your employment contract, it may be a good idea to consult with an experienced employment lawyer or HR professional to ensure that your rights are protected.

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