A hotel company was right to sack an employee who was also a shareholder and director of a property development firm as the situation risked creating a conflict of interest, an industrial tribunal ruled yesterday.

The tribunal, chaired by Franco Masini, said Corinthia Hotels International Ltd was justified in taking action against Ray Mangion, who was in clear breach of a clause in his contract, especially because he had not obtained written consent from his employer.

Mr Mangion was the director of technical services at Corinthia Hotels but was also involved in a private firm, which was wound up the day after he was fired. He told the tribunal he had not been given any warning and someone else was employed to replace him after he left.

CHI Ltd countered that Mr Mangion’s job was terminated for breaching a clause in his contract, signed in 1995, which stated that he “... will not, without written consent of the company, carry on, or be engaged or interested in, any other business, trade or calling whatsoever.”

It said although Mr Mangion’s company did not develop hotels, it brought him into contact with construction industry service providers.

Mr Mangion claimed his superiors knew about his involvement in this private company but Continental Hotels denied this. The tribunal also questioned why Mr Mangion had not sought written consent if they were aware of it.

The tribunal heard that Mr Mangion was confronted about this prior to his sacking but denied any involvement with any other organisation.

In examining whether the company was right to fire Mr Mangion with no warning, the tribunal noted that he had been asked for an explanation when asked if he was involved in another organisation.

It ruled the breach of contract merited the extreme measure after Mr Mangion was given the possibility to explain himself and make his case. Lawyer Andrew Borg Cardona appeared for Mr Mangion while lawyer Karl Briffa appeared for CHI Ltd.