Duty of Good Faith Applies to Resignations

In Evans v Avalon Ford Sales ( 1996) Limited, ( 2015 NLTD (G) 100 Mr Justice Butler applied the SCC case of Bhasin to a fact situation regarding an emotional resignation. The Judge made the following comments :

” [114] I conclude therefore on the facts of this case that even if the Plaintiff had resigned, the implied term of good faith and fair dealings which applied to both parties and to the employment contract required the employer to give Mr. Evans time to cool off and reconsider. The Defendant’s failure to do so represents a breach of the implied major term of good faith and fair dealings.

[115] Further, returning again to Bru, I accept that the Defendant’s actions and inactions following Mr. Evans’ resignation on the evening of June 10, 2010 would also be characterized as a form of careless disregard. In contractual terms, this represents a breach of the implied fundamental term of good faith and fair dealings applicable regardless of whether the Plaintiff involuntarily resigned (as I have found) or voluntarily resigned but in circumstances of confusion or uncertainty.

This is another example of how the Courts are utilizing the doctrine of honest contractual dealing in the employment context.

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