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Both the employers and employees are under an implied duty not to act in a manner that undermines the trust and confidence between them. Conducts which will be regarded as undermining the relationship are those that are likely to destroy or seriously damage the degree of trust and confidence when viewed objectively. The following are examples of acts that will destroy the relationship of trust and confidence between the employer and employee:


  • Verbal abusing the employee
  • Failing to pay discretionary bonus to a high-performing employee because he has given notice of termination
  • Undermining a superior in front of his subordinates


In cases where the employer breaches the mutual duty of trust and confidence, this can amount to repudiation of the employment contract by the employer. The employee can choose whether to affirm the contract or accept the employer's repudiation and treat the contract as coming to an end.