McMahon v TGC is a decision from the BC Supreme Court arising from a wrongful dismissal. One of the issues at play was whether the dismissed employee had a duty to disclose information relating to a competitor who became his subsequent employer to TGC.
The discussion starts at para 106 where the Court concludes that a failure to disclose may justify dismissal or discipline even where there is not a fiduciary relationship. The Court found that while there may have been a failure to disclose there was no evidence that TGC suffered any harm as a result.
This is interesting because if the goal of such policies is to require employees to be forthright how does one limit legal liability to situations where the employer can prove an actual loss. Where is the 'prophylactic' effect referred to in Weise. Does this mean that employees can withhold information and then take their chances as to whether their employer can prove loss? This certainly seems to be a bit of a results driven decision where the employer appears to be the more odious of the two parties in terms of conduct and as a result the Court gives the employee a pass regarding failure to fulfill duties.
