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A decision of the federal court may have taken the legal ramifications of an employer's policies to a whole new level the Commonwealth Bank was found to have breached its duty of trust and confidence to an employee whose position had been made redundant so what duties are in a relationship between an employer and employee and what does this case bring up we are joined by joy deep Pore from people and culture strategies what's implied in this duty joy deep that that was involved in this case it's important to understand that the way an employment contract works from a legal point of view most people will have a contract of employment that contract will set out things that are known as expressed terms those expressed terms are the matters that'll be dealt with in that contract such as what the person is employed to do what they're going to be paid when they start all those kinds of things the law has recognized for many years that even if certain things aren't written into a contract they're implied so for example you don't have to write into a contract that the employee can't steal from the employer that's a fairly fundamental part and parcel of being an employee what this particular case is all about is an implied duty that's been debated for many years and has never really got off the ground here in Australia that employers o their employees a responsibility or a duty of trust and confidence in other words the employer can't conduct itself in a way that undermines that that fundamental trust that it needs to have with its employees now you can appreciate as most people would, but that's a fairly vague and nebulous sort of concept with potentially far-reaching ramifications it's unsurprising that Australian courts have said for many years hang on we're a bit nervous about extending it to the point of being an implied term in every employment contract, but this case is at least on the particular facts that were before the court in this particular case that yes that implied duty does exist well I mean that's interesting so what specifically would that implied Duty entail and how would making someone redundant breach that yeah it's its interesting because what the federal court judge justice Sanka said in this particular case that in circumstances where the employer which in this case was the Commonwealth Bank had an extensive redundancy policy that had a number of obligations in it that they chose to impose on themselves around how they would handle broadly speaking the redundancy and redeployment process of an employee whose position had been made redundant when you fail to comply with certain parts of that that conduct amounts to a breach of this implied duty so interestingly he what he's saying is that the mere fact that you're not complying with the policy doesn't mean that you're breaching the contract because he accepted that policies and contracts can be separate but where it goes to such a fundamental and important obligation such as if...
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