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Employees should act in good faith : legal - just in case

Brian Van Zyl

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Abstract

An employer can claim for damages against an employee for breach of a contractual duty of good faith. The high court, in Value Logistics Ltd v Weinberg and Du Toit (2012) 23 SALLR 1 (HC), recently had the opportunity of considering the following important issues: (a) What is the basis of an employee's duty to take reasonable care and exercise expertise in the handling of the business of his employer? (b) In the scenario where an employee breaches his contractual duty of good faith, what are the remedies of the employer? (c) In the above scenario, what is the basis upon which the employer's damages will be calculated? (d) What is the test to determine whether or not an employee breached his contractual duty of good faith by means of his negligent conduct?

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What this paper is about

An employer can claim for damages against an employee for breach of a contractual duty of good faith. The high court, in Value Logistics Ltd v Weinberg and Du Toit (2012) 23 SALLR 1 (HC), recently had the opportunity of considering the following important issues: (a) What is the basis of an employee's duty to take reasonable care and exercise expertise in the handling of the business of his employer? (b) In the scenario where an employee breaches his contractual duty of good faith, what are the remedies of the employer? (c) In the above scenario, what is the basis upon which the employer's damages will be calculated? (d) What is the test to determine whether or not an employee breached his contractual duty of good faith by means of his negligent conduct?

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Available abstract

An employer can claim for damages against an employee for breach of a contractual duty of good faith. The high court, in Value Logistics Ltd v Weinberg and Du Toit (2012) 23 SALLR 1 (HC), recently had the opportunity of considering the following important issues: (a) What is the basis of an employee's duty to take reasonable care and exercise expertise in the handling of the business of his employer? (b) In the scenario where an employee breaches his contractual duty of good faith, what are the remedies of the employer? (c) In the above scenario, what is the basis upon which the employer's damages will be calculated? (d) What is the test to determine whether or not an employee breached his contractual duty of good faith by means of his negligent conduct?

Key concepts: Damages, Good faith, Duty, Duty of care, Bad faith, Business, Faith, Law

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