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Contract to stop employees stealing work?

  • 14-12-2013 10:47am
    #1
    BillyBoy13
    Closed Accounts Posts: 296 ✭✭


    I already asked this elsewhere. To paraphrase from my other thread:
    How can I stop... [my employee]....from giving out his number and telling my customers he will do the work at weekends/nixers.

    And vice versa, I dont want customers approaching him and offering to give him the work.

    Ive have being thinking about the issue since posting that and Im wondering is this something a solicitor could help me with?

    Perhaps I could get some kind of contract wrote out, that says "i joe bloggs agree not to poach customers otherwise I can be sacked and legally chased for any lost profits caused to the company".


Comments

  • #2
    OU812
    Registered Users, Registered Users 2 Posts: 6,088 ✭✭✭OU812


    Non competitive clause


  • #3
    the world wonders
    Registered Users, Registered Users 2 Posts: 489 ✭✭the world wonders


    This is known as a non-compete clause and is a fairly common condition in employment contracts; any competent employment solicitor should be able to help you draft a reasonable clause which will stand up in court.

    Including it in the contract for new hires should be straightforward enough; where you may encounter problems is getting existing employees to agree to a non-compete. Some form of carrot may be required...


  • #4
    BillyBoy13
    Closed Accounts Posts: 296 ✭✭BillyBoy13


    the world wonders wrote: »
    This is known as a non-compete clause and is a fairly common condition in employment contracts; any competent employment solicitor should be able to help you draft a reasonable clause which will stand up in court.

    Including it in the contract for new hires should be straightforward enough; where you may encounter problems is getting existing employees to agree to a non-compete. Some form of carrot may be required...

    Thats great news that such a thing exists.

    I suppose the next question is, in the real world, does such a contract really mean much?

    I mean, supposing I catch my employee stealing work, will it turn into a grey area where I have prove it beyond resonable doubt and then go through the courts etc. IE, spend all that time/energy/money to reclaim a profit of 300euro. And then maybe even the judge say Im in the right, the employee is in the wrong, but you cant extract blood from a stone so I still lose.

    Like I said, is this contract actually worth anything for a small business thats just trying to find its feet.


  • #5
    the world wonders
    Registered Users, Registered Users 2 Posts: 489 ✭✭the world wonders


    BillyBoy13 wrote: »
    I mean, supposing I catch my employee stealing work, will it turn into a grey area where I have prove it beyond resonable doubt
    It would be a civil case so the standard of proof would be "on the balance of probabilities", not "beyond reasonable doubt".
    and then go through the courts etc. IE, spend all that time/energy/money to reclaim a profit of 300euro. And then maybe even the judge say Im in the right, the employee is in the wrong, but you cant extract blood from a stone so I still lose.

    Like I said, is this contract actually worth anything for a small business thats just trying to find its feet.
    Yeah, it's more of a deterrent than a realistic way of recovering damages.


  • #6
    BillyBoy13
    Closed Accounts Posts: 296 ✭✭BillyBoy13


    OK, thanks for the advice. I think maybe I'll look into some other ways. i.e. give enough job perks and above average wages that an employee wouldnt want to risk losing it all for a nixer.... rather then say trying to scare them into not doing it.

    Thanks for the help :)


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  • #7
    Peregrinus
    Registered Users, Registered Users 2 Posts: 26,998 ✭✭✭✭Peregrinus


    The chances of your recovering damages are slim to zero, frankly. The value of a non-compete clause is that it strengthens your case for firing him if he is engaged in this activity.


  • #8
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,806 ✭✭✭GerardKeating


    the world wonders wrote: »
    This is known as a non-compete clause and is a fairly common condition in employment contracts; any competent employment solicitor should be able to help you draft a reasonable clause which will stand up in court.

    Including it in the contract for new hires should be straightforward enough; where you may encounter problems is getting existing employees to agree to a non-compete. Some form of carrot may be required...

    normally one would get existing employees to sign at the next pay review, no sign, no pay increase.


  • #9
    returnNull
    Closed Accounts Posts: 1,235 ✭✭✭returnNull


    there was a thread in the software development forum where somebody was contracted out by an agency but got into problems when he was offered full time work with the company bypassing the agency.Afaik he had signed one of these clauses.

    EDIT:It was the contract between the agency and company and not the contractor.
    here's the link if you're interested
    http://www.boards.ie/vbulletin/showthread.php?t=2057071347


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