Employer Rights Regard Confidentially With No Contract
Employer Rights Regard Confidentially With No Contract
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Discussion

johnbear

Original Poster:

1,568 posts

266 months

Sunday 29th March 2009
quotequote all
I've given one of my employees their contract to sign 5 days ago. They have been with me a few months but they are very evasive about signing it.

The trouble is I might have to make some staff cut backs soon and I am concerned that it might cross their mind to poach some of my customers and set up themselves.

1. What is the legal situation if they don’t sign?
2. If they won’t sign, are they terminated automatically or can I terminate them automatically, and how does this affect confidentially?
3. What if I have to make them redundant before they have signed regarding confidentially?



Zain09

117 posts

215 months

Sunday 29th March 2009
quotequote all
johnbear said:
I've given one of my employees their contract to sign 5 days ago. They have been with me a few months but they are very evasive about signing it.

The trouble is I might have to make some staff cut backs soon and I am concerned that it might cross their mind to poach some of my customers and set up themselves.

1. What is the legal situation if they don’t sign?

Nothing if there is nothing in writing.

2. If they won’t sign, are they terminated automatically or can I terminate them automatically, and how does this affect confidentially?

You'd have to give them a weeks notice if under a years service.

3. What if I have to make them redundant before they have signed regarding confidentially?

2.
All you need to do is have them sign a covenant, which they should know about prior to employment therefore causing no problems and the contract should be done within the first few weeks. Anything after that and it becomes difficult.

Bernie-the-bolt

15,403 posts

281 months

Sunday 29th March 2009
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I think from memory that if an employee accepts receipt by virtue of having been given the contract but then take forever to sign/and or not sign, they are still accepting the contract in the eyes of the law.

That said, I would rather have a signed contract if I thought there may be some action about to happen.

Stupid question, but have you simply asked him where is his signed contract or are you too afraid just in case he says 'get lost I'm leaving and taking customers'?

johnbear

Original Poster:

1,568 posts

266 months

Monday 30th March 2009
quotequote all
I contacted the FSB legal helpline this morning. You do need a contract with restrictive covenants to pervent information disclosure that isn't in the public domain, even then there can be enforcement issues.


superlightr

12,920 posts

294 months

Tuesday 31st March 2009
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But he is not allowed to take a list of contact details and use them himself outside of your bsiness that is theft from your business. Its also a breach of data protection.

If he needs to be made redundant then do so.
If he then steals a list of client then start a court summons.

Make him aware of the above course of action. Pre-empt and contact your clients to ask them to let you know if he contacts them.

JustinP1

13,364 posts

261 months

Tuesday 31st March 2009
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As has been said by superlightr above, the employee can't just legally copy their contacts list and walk away.

More important than the legal issue is the practical one.

That is, can you stop them? Secondly, if they did do you have the funds and is it worthwhile taking legal action, and could they pay the potential damages.


The only practical thing you can do is stop them. That is why a lot of high end employees get 'gardening leave' when they are 'made redundant'. That is, after the call to the bosses office they are escorted back to their desk to pick up their personal belongings and then out the door, and if a notice is paid they are paid to sit at home not potentially cause damage.

I would suggest that this is the way forward if you are worried about the outcome. You cannot stop them keeping the information in their head, but you can certainly stop them from copying a file of all of your contacts details and sending out a mail merge when they start up themselves.