Inspire Nov 23

Page 11

LEGAL MATTERS Q How do we guard

A

PROTECTING YOUR BUSINESS FROM DEPARTING EMPLOYEES Richard Gvero, Joint Senior Partner and Head of Employment, offers answers to questions that business owners may have. Senior employees have access to commercially sensitive information such as business strategy, product details and customer pricing/ requirements. They also have access to client contact details and build relationships with key customers. Therefore, when they leave your business, they have the potential to cause serious harm if they join a competitor or set up in competition.

against that information and those relationships passing to a competitor? The key is not to wait for the risk to arise and to include carefully drafted restrictions in employment contracts. These can control the misuse of information and the exploitation of customer relationships beyond an employee’s time in your employment. They can prevent the former employee competing with your business for a period of time.

junior staff but are advisable for senior staff or those in roles with close contact with key customers on a regular basis and who have access to commercially sensitive information. The courts recognise that a business has a protectable interest in maintaining a stable workforce.

Q Are such restrictions

A

enforceable?

Yes if the restrictions have been carefully drafted. They will be enforceable provided that they do not extend beyond what is reasonable to protect the employer’s legitimate commercial interests in their “trade secrets” or valuable business relationships. Simply wanting to prevent competition is not sufficient justification.

Q When do restrictions overstep

A

A

the mark?

That is often when they are too wide in geographical range or over too long a period of time. For example, the restriction might prevent an outgoing employee from competing in the same industry within a geographical territory which goes beyond where the employer operates. Another example of excessive restriction is where the restriction prevents the employee from dealing with customers with whom they have not previously had material dealings. In that case, there would be no relationship with the employee to protect.

Q Can the poaching of staff be

A

Q If these restrictions are

prevented?

Yes it can, provided the restriction is proportionate. The restrictions are generally considered inappropriate for

breached, what remedies are available to you?

As well as being able to sue for any losses that your business has sustained, you are able to apply for what is known as an “injunction” to stop any further breach of the restrictions and the competitive activity.

Q Are there any pitfalls to look

A

out for?

It is important to act swiftly both to minimise the loss that your business sustains and also to be able to obtain an injunction since courts are reluctant to grant relief where there has been significant delay. The restrictions must be tailored to your business and the seniority of the employee in question. “Cut and paste” restrictions are not advisable. Also, keep the restrictions under review as their reasonableness is assessed at the time they were entered into and not at the time they are enforced.

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The Last Word

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pages 62-63

Small cause for optimism around recruitment challenges

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page 61

Business services for your protection and peace of mind

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page 59

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page 58

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page 56

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Here are a few stories from some of their current employees.

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page 51

Cultivating Skills: The Golden Thread in a Multi-Trade Industry

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page 50

Staff from Welwyn-based food and drink business do shifts at local food bank

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page 49

Energy-conscious landlords offered cashback on new loan deals

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page 49

Pop-up sustainable restaurant

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page 47

Getting the job done Lawrence Dean marks 13 years in business

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page 47

Longmores recognised by The Legal 500

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page 46

Reflections of 40 years in IT

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Legal Property Experts

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page 45

Are you ready to tackle recruitment and retention challenges?

2min
page 45

End-of-life volunteers recognised in regional awards

3min
pages 43-44

SHOP LOCAL this Christmas

2min
page 42

PENDLEY MANOR a sanctuary of ceremony

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page 41

Host your perfect sustainable event at Rothamsted Conference Centre

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page 40

Helping Herts brings together local charities

1min
page 39

Chamber stands as beacon of support in Hertford firm’s buyout move

1min
page 39

Stories of homelessness help charity raise awareness

1min
page 38

Awards guests raise more than £6,300 for community causes

1min
page 36

Youth mentoring organisation given ‘priceless’ support from business initiative

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page 35

Service charges in a commercial property lease explained

3min
pages 33-34

Magistrates’ employer recognition scheme

1min
page 32

Hertsmere not just a borough it’s a vibrant and thriving community

4min
pages 30-31

‘Tommy’ silhouettes and poppies in place to help Watford pay its respects

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page 29

Women in Leadership Conference 2024

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page 28

BUSINESS OWNERS

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page 27

Top Brand and Digital Marketing Strategies to Get you your Ideal Client

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page 26

Women in Leadership

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page 25

Upcoming Events

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page 24

Stevenage Bioscience Catalyst – a hothouse for innovation

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page 23

It’s not just the economy, stupid!

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pages 20-22

‘We are a national contractor with the local agenda always at the heart of what we do’

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Construction company is building a positive future

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PROTECTING YOUR BUSINESS FROM DEPARTING EMPLOYEES

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page 11

Together we can make a difference Improvement

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How a strategic advisor can boost and improve your business performance

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Herts Go Green and Grow update

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Specialists lead conversation on sustainability topics

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We’re in it together

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pages 4-5

LIGHTING SOLUTIONS

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