Court rules employees owe loyalty even without non-compete clauses

Court upheld the dismissal of a hotel supervisor for serving as a director in a newly established facility in the same area.

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The Employment and Labour Relations Court has upheld the dismissal of a hotel supervisor for serving as a director in a newly established company that was planning to venture into a business that would directly compete with his employer.

According to the court, this amounted to a conflict of interest since the business the employee and some colleagues sought to establish was a potential competitor to his employer’s operations.

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Note: The results are not exact but very close to the actual.