What are implied terms and when are they important?



A term may be implied into an employment contract from the conduct of the parties, from a custom in the workplace or in the industry as a whole, or because it is viewed by the court or tribunal as something the parties would have intended when they entered into the contract. Implied terms fill in gaps in the express terms of the contract and whether or not a term is to be implied is a matter for the court or tribunal. It may be necessary to imply a term to give business efficacy to a contract. Generally an implied term cannot override an express term, except in unusual circumstances.