Duty of loyalty in employment - Everything you need to know

Duty of loyalty in employment, employmentDuty of loyalty in employment, employment
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Published: Dec 09, 2024

The duty of loyalty is a fundamental part of any employment relationship and implies that the employee must act loyally towards the employer. This applies both as an employee and to a certain extent after the employment relationship has ended. Here we explain what the duty of loyalty entails, how it can be broken, and what consequences it can have.

What does the duty of loyalty entail?

The duty of loyalty means that the employee must put the employer's interests first in his professional life. This includes acting in a way that does not harm the employer's reputation or finances. Although the duty of loyalty is not explicitly laid down in the Working Environment Act, it is legally recognized as part of employment law . In many cases, it is also specified in the employment contract.

Examples of loyal behavior:

  • Maintain confidential information as trade secrets.
  • Avoid acting in conflict with the employer's interests, for example through bee acquisition.
  • Do not publicly criticize the employer in a way that damages the company's reputation.

Common breaches of the duty of loyalty

Disloyal behavior can vary from minor violations to serious violations. Examples include:

  • Sharing trade secrets: Disclosing sensitive information to competitors.
  • Negative review: Speaking disparagingly about the employer in social media.
  • Bierverv: Doing work that competes with the employer, especially without informing.
  • Abuse of working time: Carrying out private tasks during working hours.

It is important to note that the employee's right to freedom of expression applies, but this can be restricted if statements clearly harm the employer's interests.

Consequences of breach

The consequences of a breach of the duty of loyalty depend on the severity:

  • Warning: For minor violations, the employer can give a verbal or written warning.
  • Termination: In repeated or serious cases, termination may be considered. According to the Working Environment Act, the dismissal must be objectively justified.
  • Dismissal: In serious cases, the employee can be dismissed on the day, for example in the case of embezzlement or sharing company secrets.
  • Compensation claim: The employer can claim compensation if the breach has caused financial loss.

How to avoid conflicts?

To avoid misunderstandings about the duty of loyalty, both employer and employee should be clear about expectations:

  • Carefully review the employment agreement: Make sure that the clauses of the agreement are understandable and realistic.
  • Communication: Discuss potential conflicts of interest, for example, before taking on bee duties.
  • Ethical guidelines: Follow the company's guidelines for what is considered acceptable behaviour.

Duty of loyalty after termination of employment

Even after the termination of the employment relationship, the employee has certain obligations. This may include confidentiality and restrictions related to competition or customer clauses, if this is specified in the employment agreement.

The duty of loyalty is an important part of a good working relationship and contributes to a healthy balance between the employee's rights and the employer's interests.

If you have questions about the duty of loyalty or other employment law topics, you can contact Insa lawyers for free here .

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Warning in employment - Everything you need to know

The purpose of warnings

A warning in employment is a tool employers use to correct unwanted behavior or breach of the employment contract. Although the Working Environment Act does not specifically regulate warnings, there are established practices and principles that govern their use.

The main purpose of a warning is to inform the employee that a certain behavior or action is unacceptable and that a change is expected. The warning also serves as documentation for the employer, which can be decisive for any subsequent measures such as dismissal.

When can a warning be given?

Warnings are typically used in situations where the employee, for example:

  • Repeatedly late or absent without a valid reason
  • Violates internal guidelines or security procedures
  • Shows inappropriate behavior towards colleagues or customers
  • Delivers unsatisfactory work performance over time

It is important that warnings are not given for trivial matters that can be resolved through guidance or training.

Written or verbal warning?

Warnings can be both oral and written. A written warning provides clear documentation and is often preferable, especially in serious cases. A verbal warning should therefore be followed up with a written confirmation, for example via e-mail, to ensure documentation.

Content of a written warning

A written warning should include:

  • A precise description of the objectionable relationship
  • Clear expectations for changed behavior or performance
  • Consequences for failure to improve, such as possible dismissal

It is also recommended that the employee signs the warning to confirm receipt.

Number of warnings before termination

There is no fixed rule for how many warnings must be given before a dismissal can be considered. In serious cases, termination may take place without prior warning. In general, however, earlier warnings will strengthen the employer's case in the event of a possible dismissal.

Employee rights

An employee has the right to contest a warning if it is perceived as unreasonable. This should be done in writing, and the employee can seek assistance from shop stewards or legal advisers.

Follow-up after warning

After a warning has been given, the employer should follow up with the employee to ensure that necessary improvements are made. Lack of follow-up can weaken the importance of the warning in later assessments.

For both employers and employees, it is important to understand the importance of warnings in the employment relationship. Correct use and handling of warnings contributes to an orderly and predictable working environment.

Are you in a difficult situation at work? Feel free to book a free meeting with our employment law lawyers - and we will find a solution together!

Compensation for unfair dismissal

Have you been dismissed by your employer? If the dismissal is unfair, you are entitled to compensation. An employee cannot be dismissed unless it is objectively justified by the circumstances of the company, the employer or the employee.

The requirement for objectivity means that the dismissal must not be based on extraneous or improper considerations. In addition, the circumstances invoked as grounds for dismissal must be sufficiently weighty to justify dismissal. The factual basis for the dismissal must also be correct. The employer has the burden of proof in dismissal cases, which means that the employer must prove that the dismissal is objective.

Do you suspect that your employer has no objective basis for the dismissal and want to claim compensation? We at Insa advokater can help you with this process.

The legal system is such that you as an employee can claim compensation if the dismissal is unfair. The compensation is set at the amount that the court finds reasonable, taking into account the financial loss, the employer's and employee's circumstances and the circumstances in general.

Normally, you will be entitled to compensation for the financial loss you suffer until the judgment is delivered. In the assessment of compensation, it may also be considered whether you have a future financial loss as a result of the uncertainty of finding new work. You may also be entitled to compensation for non-economic loss if the employer has not followed the procedural rules in the law, for example if you were not invited to a discussion meeting before you were dismissed. Remember that you are also entitled to written notice of termination.

ATTENTION: According to the Working Environment Act, there are different time limits for legal action, depending on what you as an employee are claiming. For compensation due to unfair dismissal, the deadline for legal action is six months from the date of dismissal.

Are you unsure about your rights after being dismissed? Do you want compensation without taking the case to the courts? We have skilled lawyers in employment law who can help you in negotiations with your employer. Contact us for an informal conversation .

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