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Employer question: What does 'good faith' mean in an employment relationship?

#yourquestionsanswered How do you act in good faith, and why should you?

People working in an office

Acting in good faith is a legislated requirement for both parties in an employment relationship.

So what is good faith?

Good faith, in the context of employment, encompasses the principles of honesty, transparency, and fairness in all interactions between employers and employees. It establishes a foundation of trust, essential for fostering a collaborative and supportive work environment.

What does this mean?

In a nutshell: being communicative, consulting your employees and treating them fairly.

Other than in law, why should you act in good faith?

Embracing the principles of good faith is not just a legal obligation but a strategic choice for employers. By fostering clear communication, fair treatment, active consultation, effective conflict resolution, and mutual trust, employers can create a workplace culture that not only complies with legal requirements but also promotes employee satisfaction, loyalty, and organizational success.

Acting in good faith can:

  1. Enhanced Organizational Culture: Employers who prioritize good faith contribute to a positive and inclusive organizational culture. This, in turn, attracts and retains top talent, creating a workplace where employees are motivated and engaged.

  2. Increased Employee Productivity: Trust between employers and employees is directly linked to increased productivity. Employees who feel valued and supported are more likely to invest their time and energy into their work, resulting in higher levels of productivity and innovation.

  3. Positive Employer Branding: Organizations that operate in good faith are more likely to be perceived positively by current and prospective employees. Positive employer branding is a valuable asset in attracting talent and maintaining a strong market position.


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