Dismantling the Trojan Horse in Singapore: A Critical Evaluation of the Implied Term of Mutual Trust and Confidence

Abstract

In the law of employment contracts, an implied term in law that has held sway over various Commonwealth jurisdictions is the implied term of mutual trust and confidence. The term gives rise to hidden but major implications for employment relations around the world. Yet few seemed to question its utility and foundational basis until the High Court of Australia’s unanimous rejection of the term in Commonwealth Bank of Australia v. Barker. In Singapore, it is also often assumed that the implied term is accepted law even though the legal position actually remains wide open. This article seeks to critically examine the genesis of the term and its operation in Singapore. It also argues that despite the Singapore High Court’s repeated endorsement of this term, there are compelling reasons in both policy and principle as to why such a term should be rejected in Singapore. Employment Law, Implied Terms, Mutual Trust and Confidence, Contract Law, Singapore