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Ashurst ADTLaw update Trust and confidence in employment contracts Fact or Myth

07 November 2022

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    Ashurst ADTLaw Director Dawn Tan and Senior Associate Tristan Teo co-authored a case note on the recent decision of the High Court (Appellate Division) in Dong Wei v Shell Eastern Trading (Pte) Ltd. The case note was first published on the Singapore Academy of Law's Journals Online website, e-First, on 7 November 2022.

    At common law, the implied duty of mutual trust and confidence has been thought to apply to all employment contracts. The implied duty has been rejected in Australia but continues to be applied in the UK, Hong Kong and, until recently, has been thought to apply in Singapore. In Dong Wei v Shell Eastern Trading (Pte) Ltd [2022] 1 SLR 1318, the Appellate Division of the High Court cast doubt on the existence of the implied duty under Singapore law. 

    In this case note, Dawn and Tristan discuss the court's reasoning and arguments for and against the implied duty.

    Read the full case note published on e-first here or download the PDF version below.

    Authors: Dawn Tan, Ashurst ADTLaw Director; Tristan Teo, Ashurst ADTLaw Senior Associate.

    This is a joint publication from ADTLaw LLC (a Singapore law practice) and Ashurst LLP who together form Ashurst ADT Law, which is a Formal Law Alliance in Singapore.

    Ashurst LLP is licensed to operate as a foreign law practice in Singapore. Where advice on Singapore law is required, Ashurst LLP will refer the matter to and work with ADTLaw LLC or other licensed Singapore law practices where necessary.

    Ashurst LLP is part of the Ashurst Group which comprises Ashurst LLP, Ashurst Australia and their respective affiliates (including independent local partnerships, companies or other entities) which are authorised to use the name "Ashurst" or describe themselves as being affiliated with Ashurst. Some members of the Ashurst Group are limited liability entities. For more information about the Ashurst Group, which Ashurst Group entity operates in a particular country and the services offered, please visit www.ashurst.com

    This material is current as at 7 November 2022 but does not take into account any developments to the law after that date. It is not intended to be a comprehensive review of all developments in the law and in practice, or to cover all aspects of those referred to, and does not constitute legal advice. The information provided is general in nature, and does not take into account and is not intended to apply to any specific issues or circumstances. Readers should take independent legal advice. No part of this publication may be reproduced by any process without prior written permission from Ashurst. While we use reasonable skill and care in the preparation of this material, we accept no liability for use of and reliance upon it by any person.

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