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Good faith duties in Employment Contracts

Corporate tax lawyer Anthony Watson is reported to be claiming compensation for wrongful termination in a Federal Court action against his former employer Greenwoods & Herbert Smith Freehills (now owned by PwC Australia). Among Mr Watson’s allegations are claims that the parties to his employment agreement were required to conduct themselves in good faith and to behave reasonably. Reportedly, his employer has denied that such obligations exist under this contract! It is hard to imagine this kind of defence being upheld by the Court.