Breach Of Duty Of Loyalty
Duty of loyalty is one of the main categories of fiduciary duties. Most of these fiduciary relationships exist in a variety of legal contexts, e.g., attorney-clients, agent-principals, trusts, wills, and contracts. If your employee did not adhere to their contract and breach their duty of loyalty, you may file a claim against them. In such cases, it is important that you work with experienced employment law attorneys.
Understanding Breach of Duty of Loyalty
Under employment law, aspects of the duty of loyalty include an employee’s duty to avoid competing with their employer, as well as soliciting the latter’s other employees and clients prior to leaving the company. Additionally, employees may not pursue their personal interests during normal working hours.
It is important to note that all employees owe a certain degree of loyalty to their employers. It typically depends on the level of trust and responsibility that an employer grants an employee. In some cases, employees have access to confidential information or extensive independent responsibility. This means that their duties have risen to a fiduciary level. After taking hold of this fiduciary responsibility, employees must handle their employer’s matters with the highest degree of fidelity and integrity. Simply put, their actions and decisions at work must benefit the employer.