Competing Employees


Confidential information, competing employees & threatened litigation

If this is an issue, you need to act now. You need to work out what, exactly, has happened. What evidence exists as to what has gone on?

How much protection does the Company have? Are you dealing with a current employee? Is he/she a fiduciary? Can you put him/her on garden leave and keep him/her away from clients? Can you go on to dismiss and/or sue for breach of contract?

Dealing with an ex-employee? Are there restrictive covenants that the Company can rely upon? Is it cost-effective to seek an injunction?

On the receiving end of threatened litigation? How do you stop getting sued? Need to prevent the problem from happening?

We have extensive experience of protecting companies and individuals in these circumstances.

Preventing the problem

Consider systems to show that you recognise the value of your key employees. Avoiding excessive ‘long hours’ culture and respecting family commitments helps. So does keeping the employee challenged. Provide a career structure. Review the employee’s terms and performance regularly. Is the employee receiving market rate? Will long-term incentive plans keep the employee tied in with you? If so, we can help. In the meantime, would it help to involve key employees in management?

Institute proper reporting procedures. If you have employees with a considerable amount of client contact and who are away from the office, institute reporting procedures which require the employee to report on their activities and progress. Occasionally monitor time sheets or other written accounts of the employee against this reported activity.

Ensure proper controls are in place, by reference to: (i) what information needs to be controlled; (ii) who is to have access to it; (iii) how that access is to be limited to those entitled to use it. Consider having a policy in place for reviewing correspondence / faxes / e-mails; or at least incoming post checked. And put the photocopier in a public place.

Are the restrictive covenants still appropriate and adequate? Is it worth it to review them?

Call us now. We are waiting to help protect your interests

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Who to contact

For more information the following lawyers will be able to help with Competing Employees.

Andrew Humphrey
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