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Setting up a competing company proves costly

A lighting company has been successful in its claim against two former employees, sales representatives Gabrielle Dickens and Dax Peter.

The employees resigned late in 2014 and told their employer, E-Lighting, that they planned on setting up a competing company.

The ex-employees visited the premises of a key supplier to E-Lighting, Hunza, and informed several of Hunza’s employees of their resignation and new business venture.  Hunza then gave notice that it would end its supply arrangement with E-Lighting.

E-Lighting claimed that the employees took advantage of business preparations they had made while still employed by E-Lighting when they had access to confidential information such as customer details, customer requirements and supplier pricing.  Both employees told the Employment Relations Authority that they hadn’t used business relationships formed through E-Lighting to springboard their own business opportunities.

The Authority made an order for Ms Dickens to pay E-Lighting $10,000.  Mr Peters was ordered to pay $3,000 and Hunza was ordered to pay $10,000.