Conflict of Interest / Restraint of Trade / ???

Islund on 20/03/2019 - 13:56
Last edited 20/03/2019 - 14:33 by 1 other user

Hi,

I work for a chemical importer and distributor.

A colleague who started work here 7 months ago had just been asked to either cease her other business or resign because HR determines her role has a conflict of interest.

My colleague has a consulting business working with non-English speaker helping them import into Australia from Vietnam. A freight forwarder that my colleague could potentially use is the also freight forwarder for our employer.

My understanding is that in Vietnam there are only a few licensed freight forwarders - generally the larger multinationals so there is a limited pool to choose from. However my colleague has been told to not use anyone in that pool either as our employer could potentially be using one of them in future.

Is this not restraint of trade by our employer?

Has anyone faced a similar situation?

Education & Work

Comments

  • Tech5 on 20/03/2019 - 14:12
    +1

    Is it true that the employee has less recourse to sue/complain if they resign as compared to being fired? If so, I would just continue to work until they are forced to leave

  • JimB on 20/03/2019 - 14:26
    +1

    What does her contract say?

    How much does she like her job?

  • Randxyz123 on 20/03/2019 - 14:51
    +1

    Tell your “colleague” to speak with a lawyer. Maybe her contract needs to be modified.

    Is she competing with the company she works for ?

  • devnull73 on 20/03/2019 - 15:03
    +3

    Ignore everything HR says. Theyre all idiots. They make up drama to keep themselves relevant and in a job.

  • websterp on 20/03/2019 - 15:12
    +3

    In Ozbragain you nee to ask such questions for a "friend" not a "colleague"

    • Some Guy on 20/03/2019 - 16:14

      You nee? Sounds more Chinese than Vietnamese. I'm skeptical too.

  • Seraphin7 on 20/03/2019 - 15:56

    There are two potential conflicts here.

    Firstly, conflict over use of the freight forwarders. The concern is your colleague could be acting in a way to benefit their side business. This would arise where the colleague has significant dealings with the freight forwarder in both capacities.

    Alternative, conflict over what is being imported. There are fairly obvious competition conflicts if this is the case.

    What is the situation? A potential conflict needs to be more clearly articulated to determine if an actual conflict arises. If an actual conflict does arise, then action will need to be taken and a resolution reached. This would not be considered a restraint of trade if an actual conflict can be shown.

Login or Join to leave a comment
Login Join