Manager’s Wife Starts Business Competing with Husband’s Employer
- A Sales Manager was called by his employer and asked to confirm whether he had registered a business.
- He replied that it was his wife who had registered the business concerned which was discovered to be in competition with the Manager’s employer.
- Heclaimed that he was forced to sign a letter of resignation.
- At the Industrial Court, the Manager claimed that, “The mere fact that his wife is a director of Jamax does not undermine the business interest of the Company.” Furthermore, he had succeeded in bringing in a lot of new business for his employer.
- The employer rejected the assertion by the Manager that he had been forced to resign. He said that this was the voluntary choice of the Manager, although he did bar the Manager from the premises as he was afraid of the leakage of confidential information.
- First, the Industrial Court decided that a dismissal had taken place as evidenced by the fact that the Manager’s resignation letter wasprepared by the Company’s Director.
- However, the dismissal was upheld as there was also evidence that the Manager was actively involved in the wife’s business.
- Employee Misconduct, CLJ Publication
- Teh Seng Kay v. United Coatings Technology Sdn Bhd Industrial Court Award No. 572 of 2014  2 LNS 0572
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