LAW

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​KembaraXtra – Legal Terms – Mutuality of Obligation
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Mutuality of obligation refers to the reciprocal duties existing between an employer and an employee within a contract of employment.
The employer is expected to provide work or payment, while the employee is expected to perform the work personally when required.
Courts regard mutuality of obligation as one of the central features distinguishing employment relationships from independent contracting arrangements.
The principle is closely connected with the implied duty of mutual trust and confidence between employer and employee.
Without this reciprocal commitment and the requirement of personal service, a true contract of employment may not exist in law.
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