Posted by Gemma Ospedale, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
The High Court case of Thomson Ecology Limited v APEM Limited and Others has held that an employee found to be orchestrating a team move whilst still employed may well in breach of contract. In this case, the Operations Manager was accused of acting as a recruiting operator for the First Defendant whilst still in employment. The employer applied for summary judgement on the grounds that the employee was in breach of the implied contractual duty of good faith and fidelity, in attempting to orchestrate a team move and recruiting individuals whilst remaining employed.
In particular it was held that he was in breach of an obligation to report to his superiors the existence of the threat from a competitor, the First Defendant, to the business and staff. He was also found to be in breach of his duty of fidelity by actively assisting the First Defendant to identify and recruit his employers staff. The judge concluded that the employee had no real prospect of successfully defending the claim and summary judgement therefore was granted.
This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.
For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222
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