For employees

What does the duty of loyalty mean for you?

The duty of loyalty clarifies what you, as an employee, need to observe when performing your work. As an employee, you should carry out your tasks in a way that promotes the employer's interests and does not harm the company's reputation or business. If you have to choose between your own interests and the employer's interests, the employer's interests should take precedence. You also have a duty to inform about things that are not working properly in the operation and that could harm the employer. Confidentiality is also an important part of the duty of loyalty. It means that you, as an employee, are not allowed to disclose confidential information about the employer's business to outsiders. The obligation of confidentiality is greater in the private sector but also applies in the public sector. The duty of loyalty also includes restrictions on competition. As an employee, you are not allowed to engage in activities that compete with the employer during your employment, and in some cases, non-competition agreements may also apply after the employment has ended. Side jobs are also mentioned in connection with the duty of loyalty. As an employee, you should inform the employer about any side jobs and ensure that they do not have a negative impact on your work performance or harm the employer's interests. The duty of loyalty is not explicitly prescribed by law but is an implicit part of the employment contract and is often enforced through practice and collective agreements. If the duty of loyalty is breached by the employee, it can lead to labor law consequences, such as termination or dismissal, and possible compensation to the employer, depending on the seriousness of the violation.

For employers

What does the duty of loyalty mean for you as an employer?

The duty of loyalty is mutual. As employers, you have an obligation to treat your employees fairly, provide a safe working environment, and not act in a way that harms the interests of the employees. You should also inform employees about changes in the business and promote their opportunities for development. This balance is necessary to maintain a good working environment and a sustainable working relationship.

In Summary

  • The duty of loyalty is not legally required but still applies in an employment relationship.
  • The duty of loyalty means that the employee should prioritize the employer's interests and perform their tasks in a way that does not harm the company. It also includes obligations such as disclosure, confidentiality, non-competition, and informing about side jobs.
  • The duty of loyalty also imposes obligations on the employer, such as treating their employees fairly, providing a safe working environment, and informing employees about changes in the business.
  • If the duty of loyalty is breached by the employee, it can lead to termination, dismissal, and the employer may seek compensation.

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