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Chapter 16

Chapter #16-Post-Employment Obligations.docx

1 Page

Law and Business
Course Code
LAW 529
Pnina Alon- Shenker

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Chapter 16 PostEmployment Obligations Under common law it is an implied term of every employment contract than an EE serve an ER honestly and loyallyAspects of this obligation continue after the employment relationship endsDUTY NOT TO DISCLOSE CONFIDENTIAL INFORMATIONRegardless whether and EE leaves his job voluntarily or through dismissal he cannot use or disclose trade secrets or confidential info obtained as a result of his employmentThe duty not to disclose confidential or proprietary owned by the ER info applies equally to managerial and nonmanagerial EEsDUTY TO SOLICIT OR COMPETE WITH A FORMER ER General EmployeesThe general prohibition against using or disclosing confidential information obtained during employment is the only restriction imposedon most former EEsUnless there is an enforceable restrictive covenant in their employment contract that provides otherwise they may start a business that competes with their exER work for a competitor or solicit clients of the former ER after they leave employment Fiduciary EmployeesA fiduciary employeeis a senior or key EE who holds a position of trust and who could significantly affect and ERs interesthas additional postemployment obligations to a former ERRestriction on fiduciaries last for a reasonable time after their employment ends period usually extends from 612 months maximum 18 monthsAn EE is a fiduciary depend
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