Current issues concerning the duty of mutual trust and confidence in South African Labour Law

Abstract

In Joseph v University of Limpopo & Others (JA14/09) [2011] ZALC 8 (13 May 2011) the Labour Appeal Court affirmed that there was unfairness in the process adopted by the employer in failing to renew the employee’s fixed term contract. This research paper examines the Labour Appeal Court’s reasoning in this case, with particular focus on the development of an implied term that each party to an employment contract owes the other a mutual duty of trust and confidence, and general reasonable behaviour. This paper further argues that mutual trust and confidence in the employment context protects the legitimate expectations of employees by serving as a bulwark against illegitimate conduct or acts of on the part of the employer designed or likely calculated to destroy the employer-employee relationship, thereby ensuring fuller protection of an employee’s constitutional rights. Joseph v University of Limpopo & others is of great significance. It indicates that the employer’s ability to rely successfully upon its prerogative not to renew fixed term contract where an employee has legitimate expectation of renewal may be contingent on its having acted in a manner consonant with mutual trust and confidence.