Employer’s positive duty not to mislead or deceive potential employees
In a recent decision before the Federal Court of Australia, the Court considered the significance of representations made by employers, or directors on behalf of employers relative to inducements made to potential employees and consultants, to enter into a contract of service with the employer.
A recent decision of the Western Australian Supreme Court has examined the application of the implied term of good faith and trust and confidence in employment contracts. Justice Stephen Hall reviewed the Australian and English authorities and confirmed that the cases establish that an employment contract will generally include an implied term of good faith and confidence. Such a term applies to conduct during the currency of the employment, but does not apply to dismissal or the manner of dismissal.