The consequences of disregarding employment contracts
This high-profile debacle is essentially an employer versus employee dispute over an employment contract.
Observers may be wondering whether it is a big deal. According to Dentons’ employment and safety partner Persephone Stuckey-Clarke, restraint of trade litigation is “one of the most serious kinds of post-employment disputes for an individual and can be equally severe for companies.”
She noted that individuals who breach these restraints can be drawn into serious and costly court proceedings and potentially be the subject of an injunction.
While these restraints of trade can be difficult for businesses to enforce, it can often be the only recourse to protect themselves from the fallout of these issues, such as IP, goodwill, and client relationships.
“Restraint of trade litigation can also ensnare prospective or new employers, who can be joined to enforcement proceedings in various ways. In short: yes, it’s a big deal,” said Stuckey-Clarke.