Midlands Business Insider (Aug issue)
Protecting original thinking and ideas is vital when developing a business. However it’s not just your competitors that you need to worry about. Kim Mack, Employment Solicitor at Fraser Brown Solicitors in Nottingham, says that employers should also think about how they prevent employees from leaving and taking vital information with them – especially in the current climate.
"Restrictive covenants can be used by employers seeking to protect their businesses from competition, the loss of major clients and of key personnel. A restrictive covenant usually takes the form of a clause inserted into a contract whereby an employee agrees not to do certain things after he or she leaves the company.
"They fall broadly into four types: non-compete covenants, which seek to prevent an ex-employee from directly competing or working for a competitor within a specific geographical area or timescale; non-solicitation or non-dealing covenants, which seek to prevent an ex-employee from entering into working relationships with former customers for a set period; non-poaching of employees and restrictions on the use of confidential information.
"All of these need to be tailored to fit an individual situation as in order to be enforced, a court will need to be satisfied that the protection being sought is adequate, but no more than adequate, to protect legitimate business interests – and what constitutes a legitimate business interest will depend on the nature of the business.
"An alternative is to allow for gardening leave, especially for senior employees. This means that once employment is to be terminated the employee is required to spend all or part of the notice period at home, rather than
attending work. This prevents the employee from taking up immediate employment with a competitor and allows confidential material which the employee has access to to become out of date."
For further information please contact Kate Downs or Jane Icke at Eden PR on 0115 852 4717 or email kate@edenpr.co.uk or jane@edenpr.co.uk
Fraser Brown is a dynamic law practice working at premises in Nottinghamshire through its branches in Nottingham, Radcliffe on Trent and Bingham.
Its philosophy is to deliver superior legal advice through a personal and highly professional service for both commercial and private clients. Since 1990, Fraser Brown has acquired eight established and respected local firms as part of its major growth strategy for doing business in the 21st Century.
Fraser Brown is one of the region's longest established firms of solicitors. Over the last 12 months, it has experienced significant growth in areas such as property, contract work, construction and general litigation.