Preparing to Compete - Gross Misconduct?

Is preparing to compete with an employer Gross Misconduct?

Not necessarily says the EAT. In their judgement in Khan v Ladsker Child Care Limited the EAT provided a healthy reminder that in order for this to be gross misconduct and therefore justifying summary dismissal, an employer must demonstrate a fundamental breach of contract such as a breach of trust and confidence.

Whether or not actions would constitute a breach of contract would need to be balanced between a restraint of trade which is unenforceable and protecting the reasonable business interests of the employer. Without going into too much detail about the judgement itself, it is a healthy reminder to have properly drafted restrictive covenants and confidentiality clauses within contracts of employment.

If you wish to fully protect your business and need advice in terms of restrictive covenants, please contact us on 07716 346 708 or email me on gda@cheshirelawassociates.com