Conflict of Interests

[lbruk]

Hi all,

 

someone i know has asked me for advice and i'm not 100% sure where i stand so thought i'd see what you think.

 

This friend has worked for company A for 8 years, good service overall. They sell as part of their range "bananas" but these "bananas" now are kind of out of fashion and no longer contribute a significant amount to the business, in fact they dont even put employees there to sell these "bananas"

 

recently this friend decided to set up his own "banana" shop online, and was doing reasonably well. However company A have found out and accused him of stealing their stock of "bananas" until they provided the employer with invoices to prove their stock was not stolen. Now they have come down with the fact that there is a conflict of interest and are issuing disciplinary proceedings against the employee.

 

Now i was wondering, as there is a conflict of interest, what advice there could be. Also i might point out that in their contract there is a clause that states that they cannot work outside of this employment without their managers permission. Which then strikes me as odd why they have not just disciplined them for breech of contract rather than this conflict of interest.

 

Anything from anyone? I'm not looking for basic advice here! As i know the basics surrounding their employment, more advice on whether they can demand the invoices, whether this is a conflict of interest, if so - what can be defended and what cannot, and any reasons they havent gone down the breech of contract route?

 

thanks

[becky2585]

Rather than just a conflict of interest, this is a breach of the employee's duty of fidelity - they're acting in direct competition with their employer.

 

That, plus the breach of contract, could be grounds for summary dismissal. I've advised employers to dismiss in similar circumstances in the past.

[lbruk]

ok, thanks for that becky

[Bandit127]

In the unlikely event that your friend could save his current employment by handing over his website and further earnings to his employers, how would he proceed?

 

Online bananas or secure employment?

 

He may not have a choice - but this question should be answered by him so that he can define his strategy. If he has room for any...

[lbruk]

The friend isnt going to be dismissed, amazingly enough, as i know how the company works and their letter templates.

 

Thanks for your words of wisdom as always! Unfortunately some people just dont think about what they are doing!

[Pusillanimous]

Sounds similar to the case I read about, here:

 

http://www.limerickleader.ie/news/limerick-man-denies-selling-pc-firm-s-hard-drives-on-ebay-1-4467308

 

 

In your friend's case, Ibruk, his employers might be panicking about his possible use of the company database for clients (re the confidentiality clause in his employment contract) and getting leads.