Is there an implied term of reasonableness (or procedural fairness)?
(a) Generally There are various fundamental obligations which are thought to characterise or be inherent in certain contractual relationships such as the employment relationship, known as implied terms. Such obligations are terms implied in law, that is, they are said to arise because of the nature of the relationship rather than because of the parties’ intentions. These obligations are therefore part of all contracts of employment although it appears that they may be excluded by express terms to the contrary. (b) “Established” implied terms The established implied terms, from the perspective of an employer’s duties, include: • the duty to pay wages, • the duty to provide work, and • the duty to take reasonable care of employees’ health and safety. The established implied terms, from the perspective of an employee’s duties, are: • the duty to obey all lawful and reasonable orders given by the employer, • the duty of fidelity and good faith towards the employer, • the duty to cooperate
