Employers have an implied term of mutual trust and confidence following redundancy
Breaching this term may bring on a claim for damages
The Full Federal Court in Commonwealth Bank of Australia v Barker [2013] FCAFC 83 upheldeld that the Commonwealth had breached an implied term of mutual trust and confidence contained in an employee's employment contract. The Court held that, unless expressly excluded, a term of mutual trust and confidence would be implied in all Australian employment contracts. The employee may claim where they have suffered damage as a result of an employer's breach of that implied term where the breach occurred prior to the employee's termination.
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