A question arose recently regarding a conflict of interest between a company and a former manager of sales and marketing, in a highly competitive industrial field.

The manager was not fired. He resigned after 12 years with the company and gave as his reason for leaving, a medical issue he maintained was confidential.

People's medical conditions are generally entitled to confidentiality once the company is satisfied the condition has been certified by a registered medical practitioner.

Under his terms and conditions, he was entitled to a cash benefit on resignation for medical grounds. He had, in fact, applied for several instances of sick leave over the previous two years before resigning, during which time his reason given to colleagues implied that he had gone abroad for medical intervention.

As one of the most senior employees in the company, these leave periods were granted without question. He was given his medical benefit on resignation as a matter of course and left the company.

Two months after he left, he set up his own business consultancy firm.

After his departure, however, several messages sent to the company by e-mail were directed to the new manager, sales and marketing by title only, which, stating dates of meetings and agreements, revealed that his absences and claims for medical consideration had, in fact, been to source procurement contracts for products sold by his then-employer.

There was no evidence that he had ever had, or had not had the mysterious medical condition he claimed justified his absences, or retirement benefit.

The certifying doctor whose bona fides were never checked by the personnel department was apparently a relative and now resident in another country.

One of the misaddressed e-mails also disclosed that he had approached his previous company's customers offering his services as a sales development consultant, providing contracts to supply the same product, but at a cheaper price than they had been supplied hitherto.

It is common knowledge that the practice of soliciting your company's customers either during the time you are still employed or immediately afterwards, to be your client or customer in competition with your former employer, is regarded as unethical and even immoral.

When confronted, he shrugged and asked if there were any law against it, and who was going to stop him?

While an employee prevaricating about his reason for wanting to take sick leave to travel for medical tests and then evidence is found during that period, that he was either working for a competitor or 'on the side' for himself, can justifiably lead to a loss of confidence, the core of the matter will be whether this justifies dismissal for loss of confidence, due to breach of the employee's common law duties of fidelity and fiduciary responsibility, particularly, in the latter case, if it is a senior employee.

There can be an understandable loss of confidence on the part of the employer.

He was lied to, which, by itself in common law causes a loss of trust and may, if