Employment Lawyers Help With Breach of Fiduciary Duty
Depending on the nature of an employee’s job, and their industry, some employees may owe their employer fiduciary duty, which involves a higher level of trust and expectation. In many cases, these fiduciary duties require an employee to safeguard confidential information and take steps to prevent them from being stolen from the employer after they leave their position. When this happens, a breach of fiduciary duty has occurred and the employee may be subject to legal action.
employment lawyer Toronto can help with a wide range of employment law issues including breaches of fiduciary duty. Often, these kinds of disputes will be mediated or resolved through arbitration rather than going to court. The skills of an employment lawyer are key in assisting clients with achieving the best possible results through alternative dispute resolution methods. These skills include strong communication, negotiation and analytical thinking.
In some cases, an employee may be barred from working in a competitive business for a certain period of time following their departure from the company based on the terms of a non-competition clause that is included in their employment contract. These agreements are enforceable in most cases, but there are exceptions. For example, if the company’s clients are not specifically tied to documents (such as customer lists) then an employee might be permitted to go to a competitor following their termination.
How Can Employment Lawyers Help With Breach of Fiduciary Duty?
The Toronto executive employment lawyers at Massey LLP have a great deal of experience in dealing with the issue of non competition clauses. They are able to effectively negotiate with employers and defend against civil claims brought by former employees. They also have a keen eye for those clauses that are unenforceable due to changes in Ontario employment law.
If an executive employee breaches their fiduciary duty by using knowledge they gained while working for their previous employer to steal significant clients or to work with competing businesses, they may be subject to a lawsuit. A successful claim for breach of fiduciary duty can result in damages that would compensate the employer for any profits that the former employee made by their actions as well as an order to refrain from further conduct.
A breach of fiduciary duty can be difficult to prove and the onus is on the plaintiff to demonstrate that the breach was substantial and caused actual harm to the employer. This can be difficult, as the employer must show that it is likely that it would have lost clients if it was not for the former employee’s breach of fiduciary duty.
Mergers, closures, “right-sizing”, management upheavals and arbitrary office politics can all cause major disruptions for any business. If you have been unfairly dismissed, restructured or harassed in the workplace, contact us to find out how our Toronto employment lawyers can help. We have a proven track record of obtaining significant compensation for our clients in wrongful dismissal, workplace discrimination and other employment-related litigation. Call us today to book a free consultation.
