The paper "Catastrophe Concepts - Karens Release " is a great example of a finance and accounting article. Employees are the key asset of every company; however, they have access to trade secrets and confidential information. Apart from this they even have enough influence on other employees that they can cause them to leave the company and work for a competitor. Thus every company should ensure that they are safeguarded against issues. Karen’ s release is legal under the doctrine of employment-at-will, providing she was an employee. Thus Catastrophe Concepts can issue a termination letter to Karen as she has an Employment-at-will status.
Thus only receiving an appointment letter and a contract does not provide employees with job security, and an employee can be terminated within a minute without even having any reason at all (Van Buren & Greenwood 2008). On the other hand, if Karen was a contractor, then Catastrophe Concepts would have broken the employment contract which would be illegal. Catastrophe Concepts can not prohibit Karen from passing their trade secret or misusing confidential information to someone else as a result of her employment.
Also, they cannot prohibit her to continue even after the employment has come to an end and if the employee had breached this duty by disclosing employer trade secrets, the employer has several remedies. Catastrophe Concepts should have mentioned in Karen’ s contract at the time of employment that all information was confidential and should not be used elsewhere. They should make her sign another contract stating the following. I acknowledge that all Confidential Information, whether or not in writing and whether or not labelled or identified as confidential or proprietary, is and will remain the exclusive property of the Company or the third party providing such information to me or the Company. Nevertheless, there is no implied term that forces the duty on Karen not to disclose any information after the termination of the employment is very restricted.
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