Harry is an employee; he works for an Acme Company as a cleaner. Harry works at night with a number of other cleaners; they need to work till about midnight and leave the premises. After some recent negotiations the employees who work as cleaners are told they are not allowed to smoke on the premises, they are not to take more than 45 minutes for their tea break, and they are not permitted to allow any outsider onto the company premises.

Harry does not like the cleaning supervisor, and he is a smoker who likes to take breaks to have a smoke. Harry has found a place on the company premises where the supervisor cannot see him, and where he can smoke. Harry has not been happy recently. The supervisor has changed the type of work he needs to finish at night. Harry thinks the new work schedule is unfair.

Harry is discovered by the supervisor in his 'smoking hole', and the supervisor puts Harry on a warning. Harry swears at the supervisor and makes some threats, which results in security being called and Harry escorted off the premises. Harry is then informed by the company that his services are terminated.

Harry sets up his business and contacts all of his fellow cleaners and is now asking them whether they would like to join him in a new enterprise. The company hears about Harry's activities and want to stop him.

What are Harry's rights and liabilities in this situation?