PRINCIPLE STATEMENT

Lending essential working material to an opposing businessman without permission is incompatible with the faithful discharge of an employee's duty and justifies summary dismissal.

RATIO DECIDENDI (SOURCE)

Per Ogwuegbu, JSC, in Underwater Engineering Co. Ltd. v. Dubefon (1995) NLC-41992(SC) at pp. 7–8; Paras. D–A.
"The respondent admitted lending the thermolance to Ben Ari without obtaining the permission of his expatriate boss. The thermolance appears to be a very essential working material for divers. The lending of it out to an opposing business man without permission would appear to be incompatible with the faithful discharge of the respondent's duty to the appellants and would be injurious to the appellants' business to retain the respondent. The dismissal or termination of the respondent's employment by the appellants on 12th October, 1982 was justifiable."
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EXPLANATION / SCOPE

Misconduct incompatible with faithful duty justifies summary dismissal. Lending essential equipment to a competitor without permission is such misconduct. The principle applies to all employment contracts. The employer need not give prior warning. The court will examine the nature of the misconduct. The rule protects the employer’s business interests. The employee’s conduct must be serious.

CASES APPLYING THIS PRINCIPLE