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NSW S106 UNFAIR CONTRACTS - ALTERNATIVES

s106 gives a wide discretion to remedy unfair contracts - excluded matters are

  • unfair dismissal s109A,
  • salary cap over $200,000 s108A and
  • time limitations - 12 months strictly - s108B.

    Common Law - Mutual Trust and Confidence

    UK case Malik & Mahmud v Cank Credit [1998] ac 20 negative duty - employer not to do certain things - a party will not, without reasonable and proper cause, conduct itself in a manner likely to destroyor seriously damage the relationship of confidence and trust between employer and employee.
    suggested implied mutual obligation of good faith and fair dealing

    Court Of Appeal has been very active in s106 matters - critical of Commission. s179 protects decisions of Commission. Court of Appeal cannot force a change. Some now applying to CA before decision - even as Summons issued -

    Mitchforce
    Solution 6 - appeal H Ct
    QSR - appeal H Ct

    collateral documents - need to get whole contract into one document if possible - contract relating to work performed in an industry - See Brunings Case - where emails talk of additional interrelated matters. Also GGC Case.

    Another problem - Ct Appeal - if you have a contract - s106(5) read down in Solution 6, relief must be closely related to performance of work. appeal to H Ct.

    Sydney Water - a mere breach is not an unfair contract - appeal still on.



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