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Setting up a rival company 'clearly destroyed' the confidence required in an employment relationship, the Fair Work Commission has found in upholding a summary dismissal.

In 2021, EIM Training became aware that a trainer was also the CEO of a direct competitor (MEO Training) and had therefore breached conflict-of-interest clauses in both her employment contract and its code of conduct.

Concluding the employee's conduct posed a risk to its business, the employer asked her for proof that MEO's training materials and business development methods were in no way similar to its own, and that she hadn't used EIM time or facilities for MEO work. After a forensic investigation and a show-cause process, it summarily dismissed her for failing to declare her conflict of interest...