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What to Do When Employees Leave
An employee is leaving you, possibly to join the competition. Do you know the right steps to limit your downside risks when it comes to employee raiding and departing employees? This article by attorney Jim Komie of Schuyler, Roche & Zwirner, P.C. offers real-world tips about how to prevent an employee’s departure from turning into a disaster.
When an employee hands you his letter of resignation, what should
you do?
(article continues below)
When employees leave, there are several things you should keep
in mind to enhance your company's ability to protect itself from
improper competition from the departing employee.
- Conduct an Exit Interview. You should try to conduct
an exit interview. While an employee has no legal obligation to
answer any questions, many employees feel guilty about what they
are doing. It is precisely at that time that they are most likely
to provide you with information that you need to know.
You should also take advantage of the exit interview to remind
the employee that he signed a non-compete agreement. If it is
handy, you should provide him with a copy of the non-compete agreement
he signed. If it is not readily accessible, you should send a
copy of the non-compete agreement to his home address.
- Act Quickly. It is crucial to act quickly. If you want
a court to issue an injunction against the employee enforcing
his non-compete, you must show the court that your company will
be "irreparably injured" if the court does not issue an injunction
immediately.
If you sit on your hands for several weeks before acting, a court
is less likely to believe that the matter is urgent and may not
issue an injunction.
- Prevent Counterclaims. A common strategy used by an
ex-employee in defending against a non-compete lawsuit is to file
a counterclaim against his former employer. It is important to
protect your company against such counterclaims. It is therefore
critical not to give the ex-employee any grounds for complaint
after his departure.
The ex-employee should not be bad-mouthed to the customers. Nor
should he be accused of taking property from your company unless
you have solid evidence that he did so. Employees joining competitors
is a reality in today's business environment.
It is never a good thing when an employee jumps ship. However,
if properly managed, an employee's departure should not be anything
more than a speed bump for your business.
Article provided by attorney
Jim Komie of Schuyler, Roche & Zwirner, P.C. Jim has a wide
variety of experience in commercial litigation, with an emphasis
on employment litigation and counseling. Jim can be reached at 312
565.8352 or via e-mail at jkomie@srzlaw.com.
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