When a key employee or team leaves to join a competitor, it can be enough to place your business in distress.
In the webinar we will explain how restrictive covenants can help protect your business’s most important asset: its staff.
What will we cover?
Every company should have, and regularly update, their risk registers and mitigation strategies for such eventualities, but a key weapon in your defensive arsenal are restrictive covenants.
Restrictive covenants limit what an employee can do in competition with you after they have left the business. There are many different types, such as those that prevent a former employee from engaging in a competing business for up to 12 months following their departure, or those that stop the solicitation of key customers and/or suppliers for a similar period. To be enforceable, they must do no more than what is reasonably necessary to protect a business interest, so they must always be drafted and amended carefully.
It’s important to avoid taking any immediate action until you know the extent of the problem. If the issue is more serious than first assumed, then any steps taken prior to this revelation could limit your options. Are any other covenants being breached? Has any confidential information been taken by the exiting employees?
We address all the above points in our on demand webinar.