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Implied Terms In Employee Contracts - High Court (Kynixa Limited v Hynes And Others ).

In Kynixa Limited v Hynes and others, the High Court held that employees may find their activities restricted not only by the express terms in their contracts, but also by implied terms. The claimant employer argued that the defendant employees who had left their employment and joined a competitor without first telling their bosses had breached their duty to serve their employer with good faith and fidelity. All three employees had held senior positions within the company and had signed contracts. This was found to be an implied term in any employment contract and the employees were therefore liable for substantial damages. The Court held that the employees had deliberately misled their employer. Their failure to disclose the fact that they were in discussions with a competitor was a breach of their fiduciary duty and their duty of fidelity to him.