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Undertaking "preparatory steps" to establish a competing business while still employed will rarely be considered a breach of fiduciary and contractual obligations, a full bench of the Fair Work Commission has highlighted, in refusing an employer's unfair dismissal appeal.

"The fiduciary and contractual obligations of employees do not provide an absolute bar to employees who may wish to make preparations for the establishment of a competitive business whilst remaining in the service of their existing employer," the bench said.

In April this year, Commissioner Benjamin Redford heard that Plumbtrax Pty Ltd summarily dismissed an employee in December 2024 after accusing him of serious misconduct.

Specifically, it alleged the employee had created and registered his own business, and begun to promote it, using the employer's resources and during his work time...