CONCUT PTY LTD V WORRELL [2000] HCA 64
High Court of Australia – 14 December 2000
FACTS
Concut had employed Wells as a manager since 1980. There was no written employment contract between Concut and Wells until 1 December 1986 when they executed a written document called a Service Agreement. The document stated that Wells was an employee of Concut and that the document had been entered into to record the terms and conditions of the employment of Wells.
On 1 December 1986, Wells also purchased shares in Concut. The Service Agreement provided that Wells was to be employed by Concut from 1 December 1986 to 30 November 1991. After 30 November 1991 either party could terminate the employment contract after giving three months’ notice. On 1 February 1998, Concut terminated the employment of Wells without any notice. It was later alleged that Wells had before 1 December 1986 misused Concut’s resources to build his own home. Wells through his trustee in bankruptcy, Worrell, sued Concut for breach of contract.
ISSUE
The Court had to decide whether the original oral employment contract had been replaced by the written Service Agreement or only supplemented by the written Service Agreement.
FINDING
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