Flagpost is a blog on current issues of interest to members of the Australian Parliament
The High Court has granted the Commonwealth Bank of Australia (the Bank) special leave to appeal the Full Federal Court’s decision in Commonwealth Bank of Australia v Barker FCAFC 83. The case will be significant as it will be the first time the High Court has considered if an implied term of mutual trust and confidence exists in employment contracts.
What is the mutual duty of trust and confidence?
The Full Federal Court was the first Australian superior appellate court to consider the issue, and found that the mutual duty of trust and confidence exists as an implied term in employment contracts. It defined the implied term as providing that an:
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