Company info stolen!

[sundaymorningstaple]

Beeroclock, Thanks for that.

[x9200]

Well, yes again, what counts is the purpose of contract/agreement so I am here with Beeroclock. The contract serves specific purpose and not all the contractual duties need to be addressed explicitly. Such breach of fidelity is IMO against the very basic contractual obligations. The employee should not act against the vital interests of its employer. I also agree that more weight is on the senior staff.

[JR8]

Thanks, that was very interesting. I'd considered that more of a moral issue, than a potential breach of civil law.

From my previous career I am familiar with the concept of 'gardening leave'. That was for example to try and stop brokers leaving to join another brokerage, and taking their client lists with them.
http://en.wikipedia.org/wiki/Gardening_leave

So anyone who could make future use of client info was put on leave, to minimise the possibility of them doing so.

I somehow seem to have missed the point that these two people were still employees. That is a totally different kettle of fish. It doesn't say much for the clients either does it, that were willing to go along with this dishonest scheme!

[sundaymorningstaple]

We ARE in Singapore.

[JR8]

We ARE in Singapore.

Lol, yes, well ...

I'm wondering how this hypothetical situation might pan-out.

Employee #A works for ABC Ltd. One of his clients it XYZ Ltd.

#A has known the purchasing manager of XYZ for several years, they work together well, and occasionally they go out for beers after work. XYZ is a big customer, and #A is considering going freelance in the same line of sales work. But his contract has a no-compete clause forbidding him from conducting such 'side-line' activity whilst in ABCs employ.

So he quits his job, and takes his entire client list with him, and now that he's freelance ABC can do nothing about it?

If ABC didn't like that or threatened action, couldn't #A say that the sales manager at XZY was a personal friend?

[x9200]

If they were already terminated/quit, yes, it's a completely different story. No specific clause - no restriction. But even if there is a clause included it also has its limits. For example, you can not enforce very long restriction periods.

[x9200]

We ARE in Singapore.

Lol, yes, well ...

I'm wondering how this hypothetical situation might pan-out.

Employee #A works for ABC Ltd. One of his clients it XYZ Ltd.

#A has known the purchasing manager of XYZ for several years, they work together well, and occasionally they go out for beers after work. XYZ is a big customer, and #A is considering going freelance in the same line of sales work. But his contract has a no-compete clause forbidding him from conducting such 'side-line' activity whilst in ABCs employ.

So he quits his job, and takes his entire client list with him, and now that he's freelance ABC can do nothing about it?

If ABC didn't like that or threatened action, couldn't #A say that the sales manager at XZY was a personal friend?

IMHO it may depend whether they were friends before #A joined ABC (or better say XYZ become the client of ABC). In this case I would think #A is pretty safe right from the start. If they become friends when #A was already an employee of ABC then I am not sure. It's does not look straightforward in any direction.

[Beeroclock]

If they were already terminated/quit, yes, it's a completely different story. No specific clause - no restriction. But even if there is a clause included it also has its limits. For example, you can not enforce very long restriction periods.

Yeah this scenario comes down to the non compete clause if any. ABC need to make use of the gardening leave and any non compete period to sure up their client relations.

It might be dangerous for #A to highlight his friendship with XYZ purchasing manager. If he does indeed poach the account from ABC, they could easily cry foul due to conflict of interest, and possibly get the contract cancelled or get the purchasing manager in difficulty....