The Employment Relations Authority has penalised a worker found to be in breach of his employment agreement.  The employee had a gripe against his employer so began operating in competition (website design) and approaching his employer’s customers for contract work while still employed.

A total of 263 breaches were discovered.  The ERA ordered a penalty of $50,000 plus over $8,000 costs. The fundamental obligation not to act in competition with the employer does not have to be specified in the agreement to be enforced.

If your employee is acting in breach of their employment agreement then you can take action to stop them and recover damages before they cause irreparable damage to your business.