If a person has resigned and is currently in his resignation month and the company that person works for finds out that he has been selling a competitor's product (his new employer) to a supplier of the company while still in our service, what legal actions can be taken by the current employer?
Searched various web sites and read up on the employment act.
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This would be very difficult for the current employee, because until his notice period expires, he is still an employee, and owes duties of care and good faith and loyalty to his current employer. This means that his action would entitle the employer to take disciplinary action, and probably dismiss him. In his current employer were to get really upset, they could also involve the new employer, because they have lost sales to the new company. So it is a very difficult position for the employee.
What kind of diciplinary action can be taken and what do you mean when you say that they could also involve the new employer. The anser if very vague and not very helpful at the moment.
The disciplinary action would be that the employer could fire the employee. Even though the employee is on a notice period, proper procedure would have to be followed. This would require an investigation meeting, but the evidence was clear that the employee was selling the competitor's product, then the employer would be entitled to dismiss the employee on the spot. By involving the new employer, it is possible that the company could sue the new employer for the profits lost on the sales which the employee made.
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