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Jenny Mackenzie
Jenny Mackenzie,
Category: UK Law
Satisfied Customers: 6307
Experience:  Over 10 years experience in general legal matters
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Hi Jenny, Does you employer legally need to know if you

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Hi Jenny,

Does you employer legally need to know if you are a company director of another organisation if you are not an official employee of this company?
Hello and welcome to Just Answer, is there anything in your contract which states that you need to disclose other business interests or does the company you are director of compete in any way with your employer?
Customer: replied 4 years ago.

Not worded as business interests, but something along the lines of getting permission to pursue other employment.



The company director was not an employee of the company at the time

So what is the concern here, it would help if you could explain the situation in more detail. Thanks.
Customer: replied 4 years ago.

The organisation is assuming that their employee has set up this company to move on


So is the company in competition with the employer?
Customer: replied 4 years ago.

no not really


Ok there is no law which specifically states that an employee must inform an employer if they are a director of another company.

If the contract states that they should then they are in breach of contract if they do not. If the contract states other employment and they are not an employee of the other company then there is not breach of contract.

The other issue is that as an employee there is a duty of fidelity and good faith to the employer. Potentially if by being a director of the other company the employee puts their employer at risk of suffering a financial loss then they are in breach of this duty and the employer may take disciplinary action against them

I hope that this has answered your question. If you have any follow on questions please ask. If I have answered your question I would be grateful if you would give my answer a positive rating. Many thanks.
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