So what happens if an ex-employee breaks their non-compete pact?
Employers who request non-compete agreements from their staff members are doing it for the sake of the company’s own safety. You know full well that an employee will have access to a great deal of data, from client files to internal processes. Taking that knowledge and using it to compete with you could be disastrous for your business.
Non-compete agreements can go as far as requesting that employees not work for companies that are direct competitors. Again, you don’t want your staff to steal your trade secrets and use them to their own advantage. You also don’t want your firm to be perceived as a place where people can come to learn the ropes before going on to start their own competing enterprise. A non-compete agreement would be appropriate in this situation where an NDA would not provide adequate protection. To know more in detail, learn more about your right from a lawyer.
What happens, though, if an employee who signed the contract later refuses to follow its terms? Just what are your options?
The value of a detailed contract
An all-inclusive contract outlining the employee’s permitted and prohibited actions is crucial in this situation. To make things official, you should also have their signature and the date. In light of the fact that employees may later deny ever having seen or read these agreements, it’s important to be completely transparent with them right now so they understand what they’re signing.
Employees who quit and subsequently go to work for a competitor or other non-approved employers are subject to legal action. Even though they are no longer employed by your organization, they have violated the terms of a contract they signed.
Taking this step will benefit you in many ways. For one thing, if the person is already working against you or poaching your clients, you may have experienced financial losses even before you fired them. In addition, you send a message to the employees who are still with you that you are serious about enforcing the non-compete agreements and will do whatever it takes to safeguard your business.
However, if the worker believes their career prospects are being harmed, the situation can quickly become heated and convoluted. You need to be well-versed in the laws that apply to your situation.