Unwritten Contract Terms - Employment Law
Contract can have both express terms or implied terms
An implied terms in employment contracts are terms not explicitly stated but are still legally binding.
Some common implied terms include
- confidentiality obligations,
- custom and trade practices, and
- terms necessary for business efficiency.
Confidentiality implies that both employees and employers have a duty to keep information acquired during employment confidential. This includes customer lists, preferences, trade secrets, and other industry-specific confidential information, regardless of whether confidentiality is explicitly mentioned in the contract.
Custom and Trade Practices implied terms are industry-specific norms that, even if not stated, are implied in the contract. For example, Taronga Zoo employees had a long-standing practice of taking monthly flexi days in exchange for extra unpaid hours worked. The Industrial Relations Commission recognised this practice as an implied term in their contracts. To imply a custom, it must be well-known within the industry, not contradict any express terms, and be acknowledged even if not universally accepted.
Some Implied Terms arise out of Necessity, meaning that the terms essential for the contract’s functionality, BUT they must be reasonable, equitable, and not contradict express terms. The law implies terms that are obvious or necessary for the contract's operation.
Overall, implied terms ensure the smooth functioning and fairness of employment contracts, addressing gaps that explicit terms may not cover. Both employers and employees should be aware of these terms to understand their rights and obligations fully.
Not sure whether your contract about your contracts implied or express terms, contact Houston Defence Lawyers, we are dedicated to protecting clients' rights. Houston Defence Lawyers brings years of experience and expertise advice or to defend cases vigorously, aiming for positive outcomes for our clients. With a skilled team in advocacy who provides strong support and guidance throughout the legal process. Our first consultation is free.
Ready to assist you in resolving any issues you may have with employment law.
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