What is good faith?
The parties to an employment relationship must deal with each other in good faith.
Dealing with each other in good faith involves:
- not acting in a misleading or deceptive way;
- being responsive and communicative;
- before making a decision that could harm an employee’s employment, an employer must give the employee information to understand the situation and a proper opportunity to comment on it.
Acting in good faith also means being fair and using common sense. It involves being honest, responding to problems in a fair and timely way, working in a constructive and positive way, sharing relevant information ahead of when others need it, listening to and taking the opinions of others onboard as soon as possible, and treating others with respect.
An example of dealing with each other in good faith is that the employment agreement should reflect genuine discussion and negotiation.