Our employment disputes experts successfully advised the client, a sales management software development company, in a dispute with a former employee concerning the termination of employment due to a breach of the employment contract by the employee.
The dispute arose after the former employee was dissatisfied with the management of the employer and decided to write a letter to all of the employer’s investors, highlighting the alleged issues and concerns he had about his employment relationship.
Regrettably, in this letter, the employee made false statements about the employer and its management board member, causing significant damage to the employer’s reputation in the eyes of the investors. This breach is particularly serious as the employer is a relatively young startup that heavily relies on its investors for financial support, making its reputation crucial.
A justified decision
The seriousness of the breach led the Employment Dispute Committee to agree with the employer that such behaviour is unacceptable and inherently a breach of the employee’s duty of loyalty. Considering these circumstances, the employer was fully within its rights to terminate the employment relationship without any prior warning.
It is evident that the false statements made by the former employee not only violated the trust and loyalty expected from an employee but also jeopardised the employer’s crucial relationships with its investors. The employer’s decision to terminate the employment was justified and necessary to protect its reputation and maintain a positive relationship with its investors.
Our services and client team
We advised the client on all questions related to the dispute and represented the client before the Estonian Employment Dispute Committee.