A commonly used post termination restriction inserted into employment contracts is intended to prevent a departing employee from poaching or hiring those employed by the business that he/she has just left. Careful drafting will also prevent such approaches and hires being made directly or indirectly.
In The Financial Times article about setting up in competition click here to read David’s common sense guidance to a departing employees thinking of poaching staff from their former employer.
Another commonly used additional restriction is one preventing an employee from working for a competitor or from setting up in competition for a stated period of time from their last day of employment.
As always, expert employment law drafting is essential if employers want to be sure that such restrictions go no further than is necessary to protect legitimate business interests.
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This article/blog is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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