The fundamentals of economic necessity and enterprise Essay Example

are implied terms within the contract that courts can enforce, assigning responsibilities for both employer and employee. The employer has obligations such as providing care for the employee, assigning work tasks, acting in good faith with trust and confidence, and compensating for negligent acts. Conversely, the employee must display loyalty towards the employer by acting in good faith, following instructions diligently, exercising care and skill, taking responsibility for property, and promptly responding to inquiries. Controversy arises from the duty of mutual trust and confidence since it originates from common law principles dictating that employees should cooperate and remain faithful.

This essay will examine the fiduciary nature and obligations between employers and employees (Part A). Additionally, it will explore the duty of good faith or fidelity, which encompasses a range of obligations an employee must fulfill to protect their employer's interests (Part B). The section will also discuss how the courts assess these obligations during and after employment, along with the limitations employers face when reinforcing these duties through restrictive covenants. Lastly, Part C will highlight the emerging duty of mutual trust and confidence from the United Kingdom, which imposes similar obligations and responsibilities on employers as a counterpart to the employee's duty of fidelity. This duty is gradually gaining acceptance in Australia.