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What is the importance of implied terms to the contract of employment? A contract of employment comes into existence once an employee's offer of services had been accepted, and the employer is required to issue a written statement of the main terms and conditions of employment1. Because the employment relationship is so extensive it is impossible to capture all the 'intentions' of the parties or 'necessities' of the employment relationship on that statement. This means that the contract of employment - in addition to being represented in other forms2 - is also governed by implied terms, which allow the courts to 'read in' certain terms that are necessary to make the contract of employment work. The test for implication of terms is 'necessity' 3 and not reasonableness4. There are three ways of incorporating implied terms into the contract of employment - by fact, by law, and custom5. A term implied by fact...

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