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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49850
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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A former employee (sales person) handed in their notice and

Customer Question

A former employee (sales person) handed in their notice and during their notice period, took our database of clients. His contract of employment prevents him from soliciting to anyone of our existing clients or using any of our information for 12 months. He left in October/November to a rival company and now he is approaching our investors, suppliers and clients and telling them that we are on the cusp of bankruptcy. It is starting to create major issues for us as some of the people he has approached are getting twitchy.
We are prepared to do whatever is necessary to stop this. What can be done and how quickly can a warning shot be fired at him.
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.
Ben Jones :

Hello, my name is ***** ***** it is my pleasure to assist you with your question today.

It is highly likely that through his actions this person is in breach of contract and you could consider taking further steps to try and prevent further damage or to seek compensation for damage already done.

Before you consider any formal legal action you should contact the person directly, advise them that they are acting in breach of contract and remind them of exactly what restrictions they are under and warn them that unless they stop doing what they are doing immediately, you will have no other option but to commence legal proceedings.

Your options then would be to either:

  • Obtain an interim injunction preventing the employee from doing certain things that would make them in breach of the restrictive covenant; or

  • Seek compensation for damages that have directly resulted from the breach of the covenants

The initial warning letter does not have to come from a solicitor but you would engage one to send it as it could carry more weight and show that you are serious about this. The legal action again does not have to be done using a solicitor but it may be advisable to do so because of the complexity of the process, especially if you are seeking an injunction. So the initial ‘warning shot’ would be the formal letter you send him which can come out as soon as you would like it to, as to legal action then anything you do would inform him that you have started a formal claim but then it would depend on the process and availability at the courts, coupled with the fact it is the festive period, it may not happen immediately but he would be aware that you are taking formal steps to deal with this.

Ben Jones :

Hope this clarifies your position? If you could please let me know that would be great, thank you

Ben Jones :

Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? Thanks