Elsie Chan discusses a recent case indicating the circumstances under which the court considered summary dismissal justified

In a recent case Cosme De net Co Ltd v Lam Kin Ming, the defendant sought information regarding details of the Company’s sales, product listing and business contact information which was not required for his role, and it was discovered that he was operating another online store selling the same products as Company, during his employment. The Court held that Cosme De net Co Ltd was entitled to dismiss the defendant summarily as he had breached the duties of fidelity and good faith by engaging in competing business and he had also breached the intellectual property and  confidentiality obligations under his contract. Take away points:

Summary dismissal was justified as the employee was In breach of:-

  1. the duty of good faith and fidelity in engaging in competing business during employment; and

  2. the duty of confidentiality and the intellectual property provision under his employment contract.

Please click here to watch the video.