“Good Faith Performance”in Employment

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The good faith performance (implied term of mutual trust and confidence) covers all aspects of the employment contract, and includes both the employer and employee observing the “implied” and “expressed” terms of the employment contract. An example of this is when either the employee or employer [prevents] one side of the party performing the contract, or delaying the contract. “Good faith” requires moral or ethical standards in which the employee and employer deal with each other, such as the implied term of “mutual trust and confidence“.

In the case of Morrow v Safeway Stores plc [2002] IRLR 9 the EAT held that ‘conduct which amounts to a breach of the implied term of trust and confidence will mean, inevitably, that there has been a fundamental or repudiatory breach going necessarily to the root of the contract’. This is significant, in so far that employers who abuse the process of power during the grievance procedure (“No man is permitted to be judge in his own cause” ) will likely have destroyed, or seriously have damaged the implied term of “mutual trust and confidence” giving rise for the aggrieved employee to claim constructive dismissal.

In the case of Laver v National Trust the Judge decided the National Trust had acted in ‘bad faith’ and awarded Mr. Laver £30,000 for unfair dismissal.

Sam Stone and his wife Amy are employment consultants with 26 years combined experience. Over the last decade Sam and Amy have helped thousands of clients with employment disputes. Sam and Amy can assist you in obviating the common mistakes, which they often see employees make when writing a letter of grievance. You only get one chance to get your letter of grievance right, so make sure you do just that! Sam and Amy can have a telephone consultation with you or write you a custom letter of grievance if:

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Sam and Amy charge £35 for an initial telephone consultation up to one hour, and £50 an hour thereafter.

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