Team Moves and Post-Termination Restrictions
If you are thinking about moving to a competitor or setting up on your own and possibly taking colleagues with you, you should take legal advice at the earliest opportunity. Moves like these are governed by a complex area of law and what you thought was a great next career step could quickly unravel. Senior executives may find themselves on the receiving end of allegations that they have poached employees and clients, breached their duties and/or misused confidential information and be threatened with expensive High Court action if the situation is not navigated carefully.
We have successfully shepherded numerous teams and senior executives who have been approached by competitors into their next move. You need to be fully informed before you go down this route, as post-termination restrictions are often a source of tension and you will need watertight assurances from your new employer. We will make sure that those assurances are in place and do all we can to make the move as hitch-free as possible.
We also regularly advise senior executives as to whether the restrictions contained in their contracts of employment or LLP agreements are enforceable. This will very much depend on the facts of the case, and the extent of such restrictions. It is surprising how many post-termination restrictions are poorly drafted and not worth the paper they are written on. In light of the uncertainty surrounding the enforceability of post-termination restrictions, it is vital that employees who are concerned about such clauses in their contract seek legal advice. Knowing that your employer’s ability to restrict your future actions is weak can be an invaluable tool in securing your next career move. Read Nick Wilcox’s article on team moves.