{"id":177829,"date":"2022-10-27T20:11:43","date_gmt":"2022-10-27T19:11:43","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=177829"},"modified":"2022-11-07T06:34:04","modified_gmt":"2022-11-07T06:34:04","slug":"employer-conflicts-of-interest-in-the-workplace","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/employer-conflicts-of-interest-in-the-workplace\/","title":{"rendered":"What You Need to Know About Employee Conflicts of Interest in the Workplace"},"content":{"rendered":"<p><span style=\"font-weight: 400\">This article will explain what you, as an employer, need to know about employee conflicts of interest in the workplace. It will explain what conflict of interest is, its effect on your business and how to prevent it.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span style=\"font-weight: 400\">What is a Conflict of Interest in the Workplace?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">In the context of employment, a conflict of interest is where a member of staff has an interest of some kind that does not align with the interests of your business. A conflict of interest may either be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">actual \u2014 where there is an active conflict of interest; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">probably\u00a0\u2014 where there is a chance of a conflict of interest emerging at a later date.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Examples of conflicts of interest in the workplace include your employee:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">receiving bribes from clients in exchange for preferential treatment;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">using company property for their own personal use, especially where it is for a commercial purpose other than furthering the course of your business;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">soliciting your clients for another enterprise;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">trading confidential trade secrets to a competitor; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">making decisions based on personal motivations rather than the needs of the business.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">What is the Effect of Conflicts of Interest in the Workplace?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">An actual conflict of interest frequently jeopardises your business\u2019 position. For instance, your business may be deprived of revenue it was otherwise owed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Alternatively, or in addition, implicated employees may be using business resources inefficiently, thereby increasing your expenses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Such employees may also make decisions that increase your business\u2019 risk of legal and financial liability.<\/span><\/p>\n<p>\u00a0<\/p>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a 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For instance, you might ban any employee from holding shares in another company or acting as a company director.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If they breach this term, it will improve your legal position if you wish to terminate their position or take further legal action.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">You should consult a solicitor who can advise on how best to draft the provision, as well as how best to <a href=\"https:\/\/legalvision.co.uk\/employment\/employment-contract-variation\/\">amend any existing contracts<\/a>.<\/span><\/p>\n<p>\u00a0<\/p>\n<h3><span style=\"font-weight: 400\">Conflict of Interest Policies<\/span><\/h3>\n<p><span style=\"font-weight: 400\">You should have <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/conflict-of-interest-policy\/\">a conflict of interest policy<\/a> to prevent conflict of interest from occurring in your workplace and deal with it effectively. This workplace policy allows you to clarify what you consider a conflict of interest and how you will deal with it if and when a conflict arises.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Your policy should encourage employees to disclose any conflicts in advance and inform them of the process for doing so. For example, the policy may detail who they should speak to about it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">As with all your company policies, your conflict of interest policy must be communicated clearly to your staff and be easily accessible.<\/span><\/p>\n<p><span style=\"font-weight: 400\">There are also other ways you can try to prevent conflict of interest from occurring in your workplace, such as by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">training managers to spot conflict and report it;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">training all staff on your business code of conduct and ethics; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">actively encourage staff to report potential instances of conflict of interest.<br \/><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Ways to Deal With Actual Employee Conflict of Interest<\/span><\/h2>\n<p><span style=\"font-weight: 400\">When preparing a response to an active, ongoing instance of employee conflict of interest, you should consider:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the nature of the conflict;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">if there was any intent or if the conflict is accidental;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the extent of any voluntary disclosure; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the potential impact of the conflict of interest on your business.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Once you have assessed the circumstances of the breach, you may deal with the conflict of interest in one of the following ways:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">informally with your employee where you resolve the issues by your employees ceasing the conflict of interest;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">formally with your employee where you ask them to stop the conflict of interest, or you will no longer allow them to work for you;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">dismissing your employee; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">taking legal action against your employee.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Where the conflict is particularly egregious, it may be gross misconduct and therefore grounds for <a href=\"https:\/\/legalvision.co.uk\/employment\/know-summary-dismissal\/\">dismissal<\/a>.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Employment conflicts of interest in the workplace can arise in numerous ways. You should ensure you know how to spot a conflict of interest and what efforts you can take to prevent it. Employers commonly include terms in employment contracts restricting activity that increases the risk of any employee conflict of interest. Likewise, you should have a comprehensive workplace policy that sets out any additional obligations, such as reporting conflicts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help understanding conflict of interest in the workplace in England, our<\/span>\u00a0<a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\"><span style=\"font-weight: 400\">experienced employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<\/span>\u00a0<a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><b>Frequently Asked Questions<\/b><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1666897450642\"><strong class=\"schema-faq-question\"><strong>What is a conflict of interest in the workplace?<\/strong><\/strong> <p class=\"schema-faq-answer\">A conflict of interest in the workplace is where a member of staff has a personal interest that does not align with the interests of your business.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1666897458143\"><strong class=\"schema-faq-question\"><strong>What are the effects of an employee conflict of interest?<\/strong><\/strong> <p class=\"schema-faq-answer\">Where a conflict of interest arises, it can have substantial adverse effects such as eroding profits and damaging the business reputation.\u00a0<br \/><\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/177829\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/employer-conflicts-of-interest-in-the-workplace\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What You Need to Know About Employee Conflicts of Interest in the Workplace\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This article will explain what you, as an employer, need to know about employee conflicts of interest in the workplace. It will explain what conflict of interest is, its effect on your business and how to prevent it. \u00a0 What is a Conflict of Interest in the Workplace? In the context of employment, a conflict<a href=\"https:\/\/legalvision.co.uk\/employment\/employer-conflicts-of-interest-in-the-workplace\/\">Continue reading <span class=\"sr-only\">&#8220;What You Need to Know About Employee Conflicts of Interest in the Workplace&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":517,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2871,2166,1783,3685,1087,833","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[218,1132,1154,1155],"class_list":["post-177829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-employment-policies","tag-medium-businesses","tag-workplace-conflicts-of-interest","tag-employee-conflicts-of-interest"],"acf":[],"yoast_head":"<!-- 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Prior to her freelance writing work, Clare worked for UK central government in policy and communication roles. She has also run her own businesses where she founded a magazine and was editor-in-chief. She is currently studying part-time towards a PhD predominantly in international public law. Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.","sameAs":["https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/"],"url":"https:\/\/legalvision.co.uk\/author\/clarefarmer\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/employment\/employer-conflicts-of-interest-in-the-workplace\/#faq-question-1666897450642","name":"What is a conflict of interest in the workplace?","acceptedAnswer":{"@type":"Answer","text":"A conflict of interest in the workplace is where a member of staff has a personal interest that does not align with the interests of your business.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/employment\/employer-conflicts-of-interest-in-the-workplace\/#faq-question-1666897458143","name":"What are the effects of an employee conflict of interest?","acceptedAnswer":{"@type":"Answer","text":"Where a conflict of interest arises, it can have substantial adverse effects such as eroding profits and damaging the business reputation.\u00a0<br \/>","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/177829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13326"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=177829"}],"version-history":[{"count":4,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/177829\/revisions"}],"predecessor-version":[{"id":178120,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/177829\/revisions\/178120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/517"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=177829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=177829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=177829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}