Facts
This case involved the summary dismissal of a production manager (Plaintiff) by his employer, a public limited company (Defendant). During his employment, the Plaintiff had established contacts with two senior employees of the Defendant in order to found his own competing company with them. He also wanted to enlist a senior employee (Head Designer) of the Defendant to create a collection for his planned company. The Defendant learned of these plans and subsequently dismissed the Plaintiff without notice.Considerations
The Federal Supreme Court found that the Plaintiff's conduct constituted a serious breach of his duty of loyalty to his employer. Although the Plaintiff would have had to give one year's notice and his plans were still in the preparatory stage, his actions were capable of destroying the essential relationship of trust for the employment relationship. The Plaintiff had attempted to poach senior employees of the Defendant and even tried to enlist an employee during the term of the contract for his planned competing company. This was incompatible with his duty of loyalty, even though actual damage to the…