Can I take clients with me?
Employers in businesses that are dependent upon good relationships with clients in a competitive industry often wish to include restraints in their employee’s employment agreement.
There are two common types of restraints that we often see. These are:
- Restraint of trade: where the employee is prohibited from working in the same industry as the employer within a certain distance of the employer’s premises, for a certain amount of time after employment ends.
- Non-solicitation: where the employee is prohibited from ‘soliciting’ clients of their former employer, for a certain period of time after employment ends.
This article focuses on what a non-solicitation clause means in practical terms.
A costly mis-steak?
It almost sounds like something out of Ramsay’s Kitchen Nightmares. Mr H was employed as a chef at a family run hotel. It was owned by Mr and Mrs D, and their daughter, S, and S’s partner T also helped manage the hotel. T often helped in the kitchen.
A Lesson on Suspension
The following decision is a good reminder that Employers need to ensure they follow their own policies and procedures when dealing with Employees.
A Court of Appeal decision involved a bus company (“R”) who suspended an employee (“M”) after he was charged with alleged sexual assault.
Restructuring - genuine proposals must be considered
Restructuring is one area where employers really do need good advice as the following precautionary tale demonstrates.
W had been at Opus for 35 years, working in the HR department. During 2014 she was advised that Opus was beginning a consultation process, with the view of restructuring the HR services in NZ. At the time W was the HR coordinator, which involved handling leave applications, monthly reporting requirements and inducting any new employees. There were four members of the team, with one member - Ms D - being away on parental leave at the time of the consultation.
Trouble at t' Mill
In September 2013 Mr R a long standing employee of milling Company W, lubricated a piece of machinery while it was still running. Unfortunately his hand got caught and his fingers were badly injured.
