Losing a team can give rise to a significant loss of a profit centre and skill base for a firm. It can be demoralising for the remaining staff, jeopardize sensitive confidential information, create a risk of losing client connections and be damaging to a firm’s reputation. It is important to act quickly and strategically should it be necessary to take action against a departing partner, employee or team. There is usually a very fine line between team moves which are conducted lawfully and within the parameters of the LLP members’ agreement, the partnership agreement or the employment contract and those which are conducted unlawfully. We have significant experience in advising firms on protecting their business and reputation against poaching and all types of team moves.
Having tightly drafted restrictive covenants, gardening leave and notice provisions in place is fundamental to protecting a business against competition by former employees and partners. Restrictive covenants are notoriously difficult to draft; courts will look very closely at the wording of the covenants and their impact on the departing individuals to ensure that they go no further than is reasonably necessary to protect a legitimate business interest. We have in-depth experience in drafting and advising on restrictive covenants of all types.
How Fox & Partners can help…
- the best time to consider the drafting of restrictive covenants is before an employee or partner joins a firm. However, it is also prudent to review covenants during the course of the employment or appointment, for example, at the same time as a salary or profit share review or bonus award. We can draft tailored restrictive covenants or review and develop existing ones to ensure they continue to be relevant to an individual as they become more senior
- we can advise on the strategy to adopt and on the investigation that should be carried out in relation to a team move in order to protect business interests and minimise disruption to the business in a team move scenario
- we have in-depth experience in drafting and requesting appropriate undertakings from departing employees and partners. Where necessary, we can assist with bringing proceedings to prohibit unlawful competitive activity and making applications for injunctions against departing individuals.
Please call us on 020 7618 2400