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02: Contract terms

A contract normally is made up of express terms – that is, terms that the parties have specifically agreed to, whether or not in writing. But terms can also be ‘implied’; these are terms without which there could not be said to be a contract. An example of an implied term would be that of the employer’s duty to take care of the worker’s health and safety. Other implied terms on the employer’s part are:

  • The duty not to destroy trust and confidence.
  • The duty to give the employee the right to obtain redress from a grievance.
In addition, some contract terms are derived from statute law. This means that even if there is nothing in the contract that specifically sets out a right that is provided for by statute (annual leave would be one example), someone employed under the contract will still have the right to the statutory minimum of at least four weeks’ annual leave a year. ‘Custom and practice’ can also create contractual terms that are enforceable by law, even if it is not written down – provided that the custom is clear, non-discretionary and consistently applied.Last Updated