| |
|
 |
|
The Slippery Slope of Non-Solicitation
|
 |
A recent case highlighted how easy it is to lose your clients to former employees.
Unfortunately, many employers think they have prevented this happening by putting a ‘non-solicitation’ clause in their employment contracts.
But as the recent case of Towry EJ Ltd v Barry Bennett and others shows, this simply won’t protect you without appropriate evidence.
In this case, Mrs Justice Cox defined ‘solicitation’ as where an employee “directly or indirectly request[s], persuade[s] or encourage[s] clients of their former employer to transfer their business to their new employer”.
Whilst this definition is straightforward in itself, the case highlights how extraordinarily difficult it can be for you to prove that this has actually happened.
In particular, you will have to have concrete evidence such as emails, letters or client testimony to prove that clients left due to persuasion rather than loyalty to your former employee.
In fact, even if you lose a huge swathe of your clients after your employee leaves and you know they are working together, it will not be considered proof of solicitation.
As a result, it is vital that any post-termination contract stipulates that there must not be any dealing between the employee and your clients, as well as any solicitation by the employee. By ensuring you restrict your ex-employees from dealing with customers then it becomes much easier for you to sue your former employee for breach of restrictions in the event that clients follow them to their new employer.
If you are unsure where you stand on these issues or you want to review your employment contracts, policies or procedures, please feel free to contact the Employment Law team on 01332 226 149.
|
| |
|
|
|
