DO EMPLOYEES HAVE A DUTY OF LOYALTY?
Employees have a duty not to directly compete with their employers. Therefore, so long as an employee works for a business, the employee cannot take actions to compete with the employer. Once the employment relationship terminates, however, the employee is usually free to compete. Competition may include opening up the same type of business, or even soliciting the existing customers and employees of the former employer. If an employer wishes to restrain a former employee, it must have entered into a noncompetition or nonsolicitation agreement with the employee. Although an employee is free to compete with the employer once the employment relationship ends, this does not mean that the employee is entitled to reveal the former employers trade secrets. If information is a trade secret, the laws protection of the secret continues even after the employee terminates.
Related Questions
- This is all very confusing. Hasn’t the University got a moral duty to arrange for employees to receive independent financial advice to help us decide what to do?
- May hazardous duty payments made to Federal civilian employees be garnished for child support enforcement?
- If employees are working very long hours or shift work what are the implications under duty of care?
