LRD guides and handbook February 2024

Case Law at Work 20th Edition

Chapter 2

2. Starting work and the employment contract

[page 11]

A contract of employment is an agreement between the employer and employee and any changes to its terms must be agreed. Changes to contractual terms can happen at any point during the employment.

Sometimes there is a dispute over terms because they are unclear or are not recorded in writing. In these situations, it falls to the employment tribunal to decide what the parties have agreed at the time they made the agreement, taking account of the surrounding context and what has happened in practice.

“Express” terms are those that have been specifically agreed by the employer and employee and “implied” terms are those that both parties are deemed to have agreed without explicitly saying so. There are certain terms that are implied into every employment contract without the need for agreement because they are fundamental to the employment relationship. For example, both employers and employees have an implied duty not to destroy mutual trust and confidence and to act in good faith. An employer also has a duty of care towards its employees including to take reasonable care that statements it makes to its employees are true.