Case Study: Post-Termination Restrictions and Confidentiality Clauses

Safeguarding Innovation: The Importance of Post-Termination Restrictions and Confidentiality Clauses in Contracts of Employment

Graphene Innovations Manchester Limited develops graphene-based compounds and systems to help customers commercialise patented products.

The challenge:

They approached mlplaw with concerns about an ex-employee breaching post-termination restrictions in their employment contract. The individual had contacted customers after leaving the company, without prior agreement. At mlplaw, we act quickly and effectively to reduce risk and achieve the best outcome for our clients. Had our response been delayed or lack lustre, the damage to our client could have been significant.

Our approach:

We had several different avenues that we could have pursued in handling this and chose to submit a Letter Before Action to the ex-employee. We chose this option for its legal formality and clear communication. The letter outlined their contractual breaches and our intent to act. We then proposed a way to resolve the matter without pursuing a claim. We also outlined consequences for non-compliance.

By putting them on notice of our intention to bring a claim for the breach of their obligations, our aim was that this would prevent any further breaches. It was also our intention that we resolve the matter promptly to avoid potentially costly litigation.

The outcome:

The matter was quickly resolved through a signed agreement with the ex-employee. It included terms protecting Graphene Innovations from future breaches. Included with this were assurances that they did not hold any of the Company’s confidential information. This went beyond the initial scope that we were instructed for and exceeded our client’s expectations that the ex-employee simply halt their breaches.

This matter led us to conduct a full and thorough review of their employment contracts because some weaknesses had been identified throughout the course of our initial instructions. Graphene Innovations Manchester Limited operate in a sector with heightened intellectual property risks. We therefore focused on post-termination restrictions and confidentiality clauses.

Conclusion:

The conclusion of this review led to updated and much tighter protections in the contracts of employment used by Graphene Innovations Manchester Limited, specifically regarding post termination restrictions and confidentiality clauses. As part of our proactive approach, we took the initiative to recommend and implement these updates, ensuring that our client had the highest level of protection in place moving forward. Our client not only achieved their goal of stopping the ex-employee committing breaches, but they also left us with significantly improved protections to take their business forward and safeguard innovation.

If your business needs support reviewing employment contracts or protecting confidential information and client relationships post-employment, our team is here to help. Don’t hesitate to get in touch for expert, practical advice tailored to your specific needs.