An employee has an implied duty not to compete with their employer or to approach a customer. In general, this duty ends when employment is terminated.
Most employers will want to protect their business secrets and customer base by including a restrictive covenant in the Employment Contract. Such clauses restrict the ability of employees to share their employer’s information or compete with the employer after employment is terminated.
As an employer you should always protect trade secrets and customer details. In order to be absolutely sure that your employees cannot share those, every one of them should sign an Employment Contract with a carefully drafted restrictive covenant. These clauses are difficult to draft and even the smallest mistake can render them unenforceable.
Employees on the other hand have to be careful what the restrictive covenant imposes on them before they sign an Employment Contract as these clauses restrict an employee’s ability to work in their chosen trade.
Whether you are an Employer or Employee, Mulberry Finch can help you. Contact Mulberry Finch for an initial consultation.
...the fact that you are a large company and i got a phonecall the next day, i appreciated that...
L Hancock
October 2011
