Contracts of employment contain an implied term of mutual trust and confidence; stigma damages are recoverable for its breach.
Employment
Australian law does not recognise an implied duty of mutual trust and confidence in employment contracts, departing from the UK position in Malik v BCCI.
The High Court considered the implication of terms into employment contracts, including whether a term of good faith or fair dealing could be implied at common law to constrain unfair dismissal.
An employer must not exercise contractual discretion irrationally or in bad faith; HK leading authority equivalent to Braganza on implied limitations on contractual discretion.
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Explain Malik v BCCI SA