Breach of Company Policy

This assignment presents a legal scenario involving Ithaca Ltd and a former employee who allegedly breached company policies. The managing director seeks legal counsel on the company's right to file a lawsuit against the employee. The advice should focus on the legal basis for the lawsuit, citing relevant laws and precedents, and outlining the potential outcomes of such legal action.

New Zealand Employment
Law

Contents
INTRODUCTION...........................................................................................................................1
ISSUE..............................................................................................................................................1
RELEVANT LAWS........................................................................................................................1
APPLICATION...............................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Employment law is able to define relationship among employers and employees. It defines
roles and duties of employers 1. Different laws are applied on them in order to maintain their
performance. At the time of recruitment if employee parties sign written legal document with
mutual consent which is known as employment agreement.
ISSUE
In the present case, Ulysses is the person who worked as cyber security programmer for
Ithaca Ltd from last 7 years. He deals with clients for business purpose also clients like to deal
with him. He usually, able to attract large number of clients on the basis of his interpersonal,
communication and programming skills. Such clients are based on Australia as well as New
Zealand. Employee travel around above mentioned countries for the purpose of work. He used
LinkdIn and large number of clients are able to collect information from his LinkdIn profile.
Ithaca Ltd refused to increase his salary for last 2 consecutive years. He feels that there are no
values of his skills in such company because he receives less salary then his expectation, skills
and talent. He joined meet from employers and made an offer that if they increase salary up to
30,000 dollars otherwise he will start his own business. But company is not able to afford
increase salary because they are not asked to clients to pay high. After served notice of one
month Ulysses leave job and start his new business. Immediately he setting up his own business
related to cyber security and which is established in Sydney. But he attracts or deal with clients
of Ithaca Ltd in order to continue his business 2.
1 Bach, S. and Bordogna, L., 2011. Varieties of new public management or alternative
models? The reform of public service employment relations in industrialized
democracies. The International Journal of Human Resource Management. 22(11).
pp.2281-2294.
2 Casey, C., Skibnes, R. and Pringle, J.K., 2011. Gender equality and corporate
governance: Policy strategies in Norway and New Zealand. Gender, Work &
Organization. 18(6). pp.613-630.
1

RELEVANT LAWS
Employment law consists rules and regulation related to relationship among employers
and employees. It defines several roles and responsibilities of employer. They are bound to
follow the same and have to comply with duties which are imposed on them. According to the
rule of Employment Act 1963 employers are bound to provide better opportunities to build up
and enhance their skills and knowledge. They have to provide payment as per their skills,
knowledge, experience and quality work. Through this they can maintain effective relationship
with them and try to attract or keep them for long time. But as per such law employees are also
responsible to maintain confidential information. They are not able to disclose any further
information of company in front of third party. This law is able to protect interest and rights of
workers in order to provide best possible working environment to them. Through which they can
secure their interest and able to keep them for long time.
Companies are bound to framed legal agreement with their employees at the time of their
recruitment. Several terms and condition mentioned under written document which is signed by
both parties. Salary amount and further information mentioned under employment agreement
which parties are bound to follow and perform their functions accordingly.
As per rule of law no employees can use technology or methods outside the company if
they engaged in their own business and work outside the employment. If they do so then they
have to receive prior approval from firm to use the same technologies to build up their functions.
Otherwise, firm having right to file case against person and receive compensation amount. On
the basis of this reason, court imposed penalty on them equal to mentioned under law and person
is responsible to comply with such act 3.
APPLICATION
On the basis of rules of Employment Act 1963 employees are not able to disclose internal
information in front of third party and try to maintain confidential information. In the present
case, Ithaca Ltd frame legal contract with Ulysses consists different clause related to restraint of
trade as well as confidential information. For the purpose of safeguarding confidential
information employees are bound to perform their roles and duties in effective manner. No
3 Kelsey, J., 2015. The New Zealand experiment: A world model for structural
adjustment?. Bridget Williams Books.
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employee can reveal information related to his own account, shareholder and other partners. Also
restriction applies at the time of agreement comes in force as well as for the period of 18 months
following its termination. This is the significant responsibility which is imposed on each and
every employee in order to safeguarding information of firm 4.
In present case, Ithaca Ltd framed policies that employees are not able to update their
LinkdIn profiles along with their new employment position until approx. 3 months after leaving
Ithaca Ltd. But Ulysses breach such duties or policies and update his new employment situation
on LinkdIn. So that, according to the rule of law company having right to file case against
employee in order to receive amount of compensation. Because in that case employees are
responsible to follow their duties and try to perform functions accordingly.
Ulysses start new business related to cyber security and on the basis of his own
interpersonal, communication and information skills. He used different innovative programming
solutions in Ithaca Ltd. On which company having right to use but no other firm is able to use
such solution without receiving their consent. But Ulysses breach such rule and used innovative
programming solution without taking approval from members of company. In that case firm is
able to file case against him and receive compensation. The act done by Ulysses has been
considered as criminal which is able to create loss for the company. Such person is responsible to
follow rules and regulation which are imposed on them and maintain their performance as well.
Employment Act 1963 provide different rights to employees in order to provide safe and secure
working environment to them. According to this, employee is responsible to follow rules and
regulation which are imposed on them and mentioned under law. Employers are responsible ton
perform their functions which are imposed on them as per the rules of law and maintain their
performance in effective manner. different rules and regulation are mentioned under law which
are able to control performance of both parties. Employees have to follow responsibilities which
are imposed on them. Employers have to provide proper training session for their employees in
order to enhance their performance and improve their skills and knowledge. Workers are
responsible to sever at least one-month notice period when they want to leave their job. Also
employers have to obtain valid reason for the purpose of dismiss workers from office. As per the
4 Kumar, S., Webber, D.J. and Fargher, S., 2012. Wagner's Law revisited: cointegration
and causality tests for New Zealand. Applied Economics. 44(5). pp.607-616.
3

rule of dismissal act companies are bound to perform their functions ethically. There are various
types roles, responsibilities and policies are mentioned under law which is able to bound parties.
Companies are not able to conduct discrimination amo0ng workers on the basis of age, caste,
sex, race and much more. Because such act is considered as wrongful act under the law. Such
activities are covered under Equality act 2010. They have to follow equal pay for equal work.
Provide motivation to employees for the purpose of enhance their skill, knowledge and
experience. They have to collect information which are related to their performance.
According to rule of law the discloser can be made by current, former, contractor,
homeworker and volunteers. But in given scenario, Ulysses has been not considered under such
employees. So that such rules are not imposed on him.
CONCLUSION
In the above mentioned case scenario, Employment Act 1963 is able to maintain effective
performance of both employers and employees. It defines several roles and responsibilities of
both parties. Ulysses is the person who employed in firm name called Ithaca Ltd as cyber
security programmer. But after serve period of one month he leaves the job and on the basis of
his skills he starts new business related to cyber security. But he used innovative programming
solutions on which firm having right to use only. So that, no other form can use the same without
obtaining legal approval from firm. but he used the same without taking approval in written or
oral. Also as per companies’ policies employees are not able to update their condition related t
new employment on Linkdin. Such rule is mentioned under legal contract which is signed by
them at the time of recruitment of person. But resignation he updates information on same and
breach policies of firm. Due to such further reason company having right to file case against
person in order to receive amount of compensation.
As a legal consultant I would like to give advice to managing director of Ithaca Ltd. That
firm having right to file case against person for the purpose of breach of policies of firm. in
which firm can take legal action against person.
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REFERENCES
Books and Journals
Bach, S. and Bordogna, L., 2011. Varieties of new public management or alternative models?
The reform of public service employment relations in industrialized democracies. The
International Journal of Human Resource Management. 22(11). pp.2281-2294.
Casey, C., Skibnes, R. and Pringle, J.K., 2011. Gender equality and corporate governance: Policy
strategies in Norway and New Zealand. Gender, Work & Organization. 18(6). pp.613-
630.
Kelsey, J., 2015. The New Zealand experiment: A world model for structural adjustment?.
Bridget Williams Books.
Kumar, S., Webber, D.J. and Fargher, S., 2012. Wagner's Law revisited: cointegration and
causality tests for New Zealand. Applied Economics. 44(5). pp.607-616.
Nel, P. and et. al., 2012. Human resource management in Australia and New Zealand.
Ruggs, E.N. and et. al., 2013. Gone fishing: I–O psychologists' missed opportunities to
understand marginalized employees' experiences with discrimination. Industrial and
Organizational Psychology. 6(1). pp.39-60.
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