Team moves: three ways to protect your business

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When key employees leave to join a competitor, employers often risk losing other team members to the new employer too. Following a recent spate of cases, Nabarro summarises here three ways for employers to protect against such team moves.

Use garden-leave clauses because they permit an employer to keep a departing employee out of the business and prevent employees from competing with the company or soliciting its employees, or assisting others to do so. Ensure key employees are subject to clear, consistent restrictive covenants that have been tailored to their roles and the business that they work in. Re-enforce restrictive covenants in any settlement agreement by making part of the settlement, particularly rights to unvested shares, conditional on compliance with restrictive covenants.

Each of these are considered in turn below…

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