FIDUCIARY DUTY

OF THE
EMPLOYEE
 If the employees have fundamental right to ensure
that their work and working condition improve their
lives and well-being, they have also corresponding
moral duties toward the employer that they serve. The
basic principles that underlies the duties of the
employees toward the employer is captures in what is
now famously known as the theory of agency. The
online legal dictionary defines the theory of agency
this way; “ a consensual relationship created by
contract or by law when one party, the principal,
grants authority from another party, the agent to act
on behalf of and under the control of the principal to
deal with a third party (freedictionary.com)
The business owner is not always present to
deal directly to customers, suppliers,
government officials, and other stakeholders.

The employee is called the AGENT of the

business owners, while the business owner is
called the PRINCIPAL. The agent (employee)
acts in behalf of the principal (owner).
Fiduciary duty is the legal and technical term to refer to the
obligations of the employees (agent) to always act on behalf
of his or her employer (principal).

The latin root word of “fiduciary” is federe which means to

“trust”. A fiduciary relationship of trust between to parties.
A fiduciary duty is ones obligation to carry out the task
entrusted to him or her. A fiduciary is a person “ who has
been entrusted with care of another party or other valuables
and who has a responsibility to exercise discretionary
judgement in this capacity solely in the interest of this other
persons interest” (Boatright 2008)
John Boatright discusses the three main principles
of fiduciary duty; candor, care, and loyalty (ibid).

&. Candor refers to the agents moral duty to be

always truthful and honest to his or her principal.

&. Care refers to the duty of the employee to take

good care of all the assets entrusted to him or her
by the owner of the business.
The duty of loyalty is a very broad obligation that covers
many things. If somebody is maligning the company, a
loyal employee finds way in order to support, protect, and
defend the company from malicious and false accusations.

If an employee happens to find another work that offers

bigger salary and benefits, a loyal employee does not
simply leave the company, endangering it smooth
operation.
Fiduciary is important because not everything can
be stated in the contract between the employer and
the employee.
“ Fiduciary relationships exist primarily to enable
individuals to give control of property, information,
or power to other people without complete
instructions, relying instead on trust” (ibid).
Fiduciary duty aids in keeping the integrity of the
employee intact.