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Employment Law

Legal guidance - compliance - software

02 NOV 2012

Ranson v Customer Systems plc [2012] EWCA Civ 841; (2012) EMPLR 160

Duty of fidelity to employer - director's fiduciary duty

27 June 2012

Court of Appeal

Pill, Lloyd and Lewison LJJ

There is an implied duty of fidelity on employees to have regard to the interests of their employer, but this duty does not prevent employees from making plans, during their employment, to compete with the employer after their employment ends. Nor is it a breach of that duty to contact customers or potential customers of the employer with a view to obtaining business from them after employment ends. That implied duty of fidelity contrasts with the fiduciary duty of directors to subjugate their own interests to those of the employer.

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