McDonald v SA

[2008] SASC 134

Supreme Court of South Australia

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Employment Law
2. › Contract of service
3. › Implied terms
4. › Mutual trust and confidence
5. › Whether implied term of mutual trust and confidence exists in Australian employment contracts
6. › Whether employer's conduct destroyed or damaged relationship of mutual trust and confidence
1. Employment Law
2. › Contract of service
3. › Constructive dismissal
4. › Repudiation by employer
5. › Whether employee entitled to treat contract as repudiated
6. › Whether series of breaches cumulatively amounted to repudiation
1. Employment Law
2. › Contract of service
3. › Employer's duties
4. › Safe system of work
5. › Supervision and instruction
6. › Whether employer had duty to prevent employee performing work not required of him but of which employer had knowledge and which benefited employer
1. Employment Law
2. › Contract of service
3. › Wrongful dismissal
4. › Damages
5. › Measure of damages for breach of contract
6. › Whether damages for non-economic loss available
7. › Whether aggravated or exemplary damages available
8. › Hadley v Baxendale (1854) 156 ER 145
9. › Addis v Gramophone Company Limited [1909] AC 488

Quick Take

The implied term of mutual trust and confidence applies in Australian employment contracts. An employer who fails to address employee complaints about workload, fails to investigate grievances, unfairly excludes an employee from interview for a position, and permits bullying and harassment may be found to have repudiated the contract, entitling the employee to constructive dismissal. However, damages for breach of the employment contract remain limited to pecuniary losses under Addis and Hadley v Baxendale; aggravated and exemplary damages are not available in contract. Section 54(1) of the Workers Rehabilitation and Compensation Act 1986 (SA) bars common law claims for non-economic loss arising from compensable disabilities.