The Federal Court’s decision in Barker v CBA effects employers and their employment policies. Justice Besanko held, amongst other things, two important points of law:

(a)  there is in Australian Law, an implied term of mutual trust and confidence in employment contracts; and

(b)  even though an employer’s employment policies may be expressly excluded from a contract of employment, a breach of those policies may constitute a breach of the implied term of mutual trust and confidence.

Employers should carefully review their current policies and seek legal advice before making redundancies that may not conform with their policies.

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