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Black Country law firm George Green LLP has launched a new contract checking service for employers to protect the business when senior employees leave.
Senior executives often have access to confidential information which businesses would not want their competitors to see, so it is vital that employees’ contracts protect their business, if they are dismissed or leave.
“Customer contacts, prices, lists, trade secrets and processes can all be put at risk by key people leaving a business,” says Julia Fitzsimmons, an associate in George Green’s employment department.
“Having a key competitor get hold of sensitive information at a time when a business is struggling could help sound its death knell, so it is crucial that the interests of the business are fully protected. That is why George Green has launched its contract checking service, to advise employers on the level of business protection which is afforded in each contract.
“Many companies have included restrictive covenants in the contracts of senior employees, but if they are unreasonable, then they are effectively unenforceable.
“However, properly drafted, so that they protect the interests of a business, rather than punishing the employee who leaves, covenants can effectively limit a former employee from dealing with clients or customers of the old employer and prevent the poaching of customers or staff.”
According to Miss Fitzsimmons, it is also possible to include extra restrictions to stop ex-employees making use of confidential information. She says: “These could include the use of extended notice periods and garden leave. During this time, the individuals will still be employed by the company, but will not be required to undertake any work, therefore effectively keeping them out of the business environment until their knowledge, influence and contacts go stale.
“As well as advising employers on the extent of protection in current contracts, we will also provide advice on how to make any necessary change to contracts and employment terms and conditions. Even if no redundancies are presently planned, it is prudent for employers to know how well their business is protected against senior people leaving.”