It is highly advisable that senior executives of companies facing redundancy agree a list of ‘restricted clients’ with their employers wherever possible, when negotiating the terms of their compromise agreements. This list should contain clients that the employees have had direct dealings with. It therefore makes it easier for such senior executives to know which clients are out of bounds as typically there would be a restricted period of anything from 3 – 12 months during which the executives cannot poach/entice such restricted clients. This is a very contentious area and executives if in doubt must take legal advice.
The point is that any disclosure by an executive of details of clients otherwise would amount to a breach of the compromise agreement by the employee and any continuing confidentiality provisions in the employee’s employment contract. The solution is thus to agree a list of ‘restricted clients’ within the terms of the compromise agreement. This would give the employee a clear indication of those clients that fall within the post-termination provisions.
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