Duty Of Fidelity Notes

April 12th 2011: Labour Law Duty of Fidelity: Last and most complex of the duties that bind employees. Complex because it's multi-faceted, and there is quite a bit of overlap with some other implied common law duties, namely the duty of good faith and fair dealing. Overlap with s4 statutory duty of good faith, also common law duty of mutual trust and confidence. In some contexts it is described as a duty of loyalty, duty to be faithful to your employer. It is also complex because it encompasses an area where you have the intersection of of a number of different types of law: contract, tort, and also equity. Depends on what sort of cause of action you want to run - the cause of action determines the legal forum. Nothing worse than taking your case to the wrong court. If you have a contractual cause of action, whether its an express or implied term, the specialist employment law authority and court have exclusive jurisdiction. Dealing with fidelity, have to take it to the authority. But there are overlapping legal duties that can be founded in common law or equity. Tort law - some overlay breach of express or implied duties of fidelity. Conversion and deceit, and conspiracy. Interference by unlawful means with contractual relations. If you are dealing with most torts, they are not actionable in specialist employment law jurisdiction - have to take to DC/HC. DC has maximum jurisdiction of damages of $200,000. Specialist employment institutions (ERA and EC) only have jurisdiction over employment contracts. Equitable causes of action that overlap with fidelity: breach of fiduciary duties, misuse or disclosure of confidential information. The higher the position of the employee in the organisation, the stricter the duty of fidelity. Senior employees have to observe the highest ethical standards. In this modern era where a lot of industries are service industries, we do put a lot of emphasis on employment relations duties. It matters quite a lot how you come across. Bad behaviour off the job can harm your employer. Duty of fidelity can limit your freedom of speech and conduct off the job. New Zealand Airline Pilots Association (Union?) v Air New Zealand: * Harmful speech will breach duty of fidelity * Two parties have fought many many battles. At least 50 cases. * Claim by Air NZ aganst NZ APA, sought damages of $2.2m * There were wage negotitions going on, and the pilots were putting some pressure on the employer. They were publicly criticising the safety of some aircraft that Air NZ was planning to put into service. Listener article mentioned where pilot said "its the last sort of plane that I would want to fly". Statements around, value of Air NZ shares could be severely affected. Statements made as part of a campaign to force Air NZ to bend to the Union's will. Breach of duty of fidelity and various breaches of tortious and equitable duties as well. CA asked itself: whether all of these concerted actions by the Union and the pilots could amount to a strike. Wrongful interference with contractual relations (between Air NZ and its customers, as customers

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