(b) That's right. In Australia, employment contracts operate within a framework of rules created by federal, state and territory legislation, and common law. The courts have the power to add to this law in appropriate circumstances when deciding cases but remain mindful of the proper division that exists between judicial and legislative law-making.
On the question whether a term is implied by law into employment contracts requiring the parties to avoid acting in a way that would seriously damage or destroy mutual trust and confidence between them, the courts have held that such a term is not essential to the working of such contracts and have declined to recognise any such implied term. Further, the courts have said that, should such a term be desirable, it would be more appropriate for the relevant legislatures to enact the change than for the courts to do so.