Duties and Obligations of Employers and Employees
Section 4 states that the parties must deal with each other in good faith. In Telecom South Ltd v Post Office Union (Inc)(1991) the contract of employment was described as "a special relationship under which workers and employers have mutual obligations of confidence, trust and fair dealing." A contract of employment is not the same as a commercial contract as it resembles a fiduciary relationship in some ways. When the ERA was introduced in 2000 the Government's policy statement stated that it is
... based on the understanding that employment is a human relationship involving issues of mutual trust, confidence and fair dealing, and is not simply a contractual, economic exchange. This basis requires specific recognition of the relationship - something not satisfactorily achieved by general contract law.
Read more about this topic: Employment Relations Act 2000
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