While working for Interclean, the two decided to become directors of another company – “Coatings”. Coatings was in direct competition with Interclean as it provided similar services.
P and R deliberately promoted their own company at the expense of their employer. For example P, acting in his capacity as an employee for Interclean, tendered for a job. At the same time R, acting as a Director of “Coatings, tendered lower for that same job.
The client accepted Coatings’ tender.
These (and other) actions were described as “outrageous” and “completely unacceptable” by the Employment Relations Authority.
Every employee owes a “special” duty to his or her employer. Any action that may be considered as conflict of interest must be avoided. In the above case, P and R were obliged to act with good faith and honesty. Both men failed to do this by undertaking actions that were in competition with their employer’s business.
I have had much comment about last weeks “angry” column. I am much happier this week. No disasters occurred on the “bonding session “.The only down side was that I lost a game of 500 to John Young a fellow partner at work. I play by “Freezing Works rules “. My card partner was playing “Railway Rules “. John Young’s card partner Mike Mika was playing “Ruby Touring Rules “. John Young didn’t even know the rules and he and Mike still won. Still smarting over that one – I take 500 very seriously.
After the first week, ACC will pay up to 80% of the employees’ wages prior to the injury or accident. The employer is under no obligation to, but can “top up” the payment to 100%. This can be done gratuitously. Otherwise, the employee and employer can agree that one day of sick leave can be taken for every five days off work to “top up” the ACC payments
This article originally appeared in the Southland Times Work To Rule column. Mary-Jane Thomas is head of Preston Russell's employment law team. Contact her by clicking here
