Client Poaching Agreement

The law recognizes that employers may deter outgoing workers from laying off clients after the end of their employment, but only if the contract does not go further than is reasonably necessary to protect “legitimate business interests” (i.e., confidential information, customer relationships and staff stability). If a former employee of a company has established relationships with certain companies or customers, it would be easier to contact those customers directly rather than start at the bottom. However, if the former employee signs a resting clause, contact with these clients could result in legal action. An employment contract could include this clause to protect potential damages that could occur if a former employer attempted to rob customers. However, if Julie signed a non-invitation clause as part of her employment contract, it would prevent her from consulting Amy and bringing her into the new business. If Julie chooses to do so anyway, the company could take legal action against her. The company wants to protect its interests and all the time and money invested in Amy`s training. 13.13. Job request. The parties agree that none of the parties and their related companies, subcontractors or their employees will employ the other party`s workers or ex-employees for the duration and up to a minimum of six (6) months from the end of the agreement.

It is common for employment contracts to contain post-employment restrictions, but it is less common to see clauses in agreements with customers (z.B. in service contracts) that prevent customers of a company from “poaching” company employees. There are good reasons for this – if post-employment restrictions are dealt with in employment contracts, they can be designed to match the employer`s interests with respect to the services of the worker concerned; In a customer agreement, a clause must anticipate interests regarding the staff as a whole. The main legal problem for non-injunctions is the unofficial right to work. Like the right to privacy, it is not an official part of the Bill of Rights. The fact is that everyone has the right to work in a chosen profession. No qualifications or jobs is one thing, but an employer cannot force anyone to work or be unemployed for them. However, an “anti-poaching” provision in a service agreement may be applicable, as the NSW Supreme Court recently demonstrated.

In this case, the Court issued a restraining order to prevent a company from employing a manager who was previously employed by a service provider in the first company (i.e., the new employer was in fact the former employer`s client). As expected, companies then use non-demand agreements with employees who often interact with customers, customers and employees. For example, a doctor`s administrative assistant would have a long and confidential client list, and a salesperson working for a company that sells to other companies would have personal relationships with each client. Companies that make something generic like copper wire need to be even more careful. For non-invitations, read it all yourself and consider whether to do so based on your job description and the conditions above. If you can accept it, go ahead and sign, but don`t be afraid to talk to your staff manager or contract lawyer if you have any questions. If it seems that this goes too far, wait before signing it until you consult a lawyer and don`t take no for an answer. Don`t forget that you can also negotiate. If you work in California, you should almost never have to sign a non-invitation agreement. Known as Poaching, it is a risk if contractors contact their own customers when it comes to contractors.

Poaching can occur while the workforce is under contract with you, or after.

This entry was posted in Uncategorized. Bookmark the permalink.