Is your business protected when senior staff leave?

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UK employment law recognises that a business is very vulnerable when a senior employee or director decides to leave for pastures new.

They may attempt to use this information for the benefit of their new employer, or in order to set up a rival business. This can seriously harm the former employer's business.

These restrictions can take many forms, and can potentially prevent employees from doing the following once their employment has come to an end:-

• Actively seeking to do business with your clients;
• Dealing with clients who may make contact with the leaving employee;
• Working in competition with your business;
• Seeking to entice away other key employees of your business; or
• Using confidential information obtained during their employment.

Case law makes it clear that a post termination restriction will only be deemed to be enforceable if it amounts to a proportionate means of achieving a legitimate aim. Clauses that are too widely drafted, or last for an unreasonable length of time, may therefore ultimately be worthless. We would highly recommend that businesses review their contracts of employment on a regular basis, and obtain advice as to whether the terms of any post termination restrictions remain enforceable.