Breach of Non-competition Clause by Former Employee

The document titled 'Breach of Non-competition Clause by Former Employee' is a letter addressed to the former employee who has breached the non-competition clause mentioned in their employment agreement. The letter serves as a formal notification to the employee regarding their actions and the consequences they may face as a result.

 

The document begins with a brief introduction, addressing the recipient by their name and providing their address. It also includes the current date and emphasizes the confidential and privileged nature of the communication.

 

The letter highlights the breach of the non-competition clause by the former employee. It mentions that the employee, without the knowledge and consent of the company, has been employed by a recruitment agency to work on projects for a customer who is also a client of the company. The letter expresses the company's view that these actions directly compete with the company's business and interests.

 

The document then proceeds to specify the clauses of the agreement that have been breached. It mentions two specific clauses: the first clause restricts the employee from soliciting or taking away existing or potential clients of the company for a certain period after the termination of the agreement, and the second clause prohibits the employee from engaging in competitive business with the employer's customers for a specified period after termination.

 

The letter states that as a result of the breaches, the company has suffered substantial loss and damage. It informs the employee of the actions they are required to take to rectify the situation. These actions include immediately resigning from or discontinuing any engagement or project with the customer, providing proof of termination within 7 days, and paying the company's legal costs. The letter also mentions that further loss or damage will be assessed.

 

Finally, the document concludes by requesting a constructive reply from the employee within the next 7 days. It warns that failure to comply may result in legal proceedings being initiated against the employee, with the employee being held liable for all legal costs incurred.

 

In summary, the document is a formal letter addressing a former employee who has breached the non-competition clause in their employment agreement. It highlights the breaches, specifies the consequences, and requests appropriate actions to rectify the situation.

How to use this document?

Guidance on how to use the document:

1. Review the document: Read the entire document carefully to understand the context and the specific breach of the non-competition clause by the former employee.

2. Identify the employee's actions: Take note of the employee's employment with a recruitment agency and their involvement in projects for a customer who is also a client of the company. Understand how these actions directly compete with the company's business and interests.

3. Understand the breached clauses: Pay close attention to the two clauses mentioned in the document. Familiarize yourself with the restrictions imposed on the employee regarding soliciting clients and engaging in competitive business with the employer's customers.

4. Assess the loss and damage: Evaluate the substantial loss and damage suffered by the company as a result of the breaches. Consider the potential financial implications for the company.

5. Communicate with the employee: Contact the former employee and inform them of their breaches of the non-competition clause. Clearly state the actions they are required to take, including immediate resignation or discontinuation of engagements with the customer and providing proof of termination.

6. Request compensation: Ask the employee to compensate the company for its loss and damage. Specify the payment of legal costs and mention that further loss or damage will be assessed.

7. Set a deadline for response: Request a constructive reply from the employee within 7 days. Emphasize the consequences of non-compliance, including the initiation of legal proceedings and the employee being held liable for legal costs.

8. Seek legal advice if necessary: If the employee fails to comply or if further legal action is required, consult with legal professionals to understand the appropriate steps to take.

Note: This guidance provides a general overview of how to use the document. It is important to adapt the guidance to the specific circumstances and seek legal advice if needed.