Conflict of Interest
The prohibition against competition by employees with their employers has its roots in the common law requirement that an employee devote his time, energy and skills to furthering the interests of the employer’s business. Employees act in bad faith if they compete with the business of their employers.
Conflict of interest can arise in the following instance. Although employees are entitled to participate in the activities of unions, it may well be that, because of a particular employee’s duties, such activities may place them in an untenable position vis a vis the employer. The court used as examples the duty of some senior employees to conduct disciplinary inquiries or to attend bargaining sessions with unions, and warned that, when senior employees must choose between their union duties and their duties towards their employers, they must ‘tread carefully’.