14 August 2008
Employment
Three employees who joined a competitor without telling their bosses breached their duty to serve the employer with good faith and fidelity—an implied term in any employment contract—and were liable for substantial damages, the
High Court has ruled. In Kynixa Limited v Hynes and others, the court decided the employees deliberately misled their employer regarding their intended resignations. Anthony Fincham, employment partner at CMS Cameron McKenna says the case serves as a reminder that restrictions on competitive activity by employees may not be found solely in the express terms of employment contracts.
