Apprentice Challenges The Master

John Kafrouni

19 Oct 2015

•

min read

When a worker leaves your business, they may start or join another business in direct competition with yours using confidential information about your customers and suppliers.

Think your workers wouldn’t harm your business even if your relationship with them deteriorates?

We urge you to reconsider. Even the best employer-employee relationship can turn sour for any number of reasons and there is simply no way of knowing what an employee who feels wronged may do. We can take steps now to protect you and your business from the harm a now hostile employee may cause.

Consider the following case study:

Company X employs Alfred. Company X and Alfred have an employment agreement. The agreement contains a clause prohibiting Alfred from competing with Company X for a set period of time after his employment ends. This is known as a ‘restraint of trade’ clause.

Alfred quits his job and sets up a competing business using confidential information about Company X customers and suppliers he gained during his employment. Company X is trying to have Alfred’s business stopped (Queensland Cosmetic Manufacturers P/L v Greig & Ors [2005] QSC 334 (17 November 2005)).

Reader’s Tip

While Company X did have an employment agreement with Alfred, it failed to cover everything it should have, particularly the need for all current and former employees to keep information about the company’s clients and suppliers in the strictest of confidence. We can advise you on all the associated risks from the outset and prepare a comprehensive employment agreement for your business. Should you so engage us, you will be able to act swiftly against any current or former employee who misuses confidential information and/or competes with your business.

Joe Kafrouni
Legal Practitioner Director
Kafrouni Lawyers

Disclaimer

The information provided by Kafrouni Lawyers is intended to provide general information and is not legal advice or a substitute for it. Business people should always consult their own legal advisors to discuss their particular circumstances. Kafrouni Lawyers makes no warranties or representations regarding the information and exclude any liability which may arise as a result of the use of this information. This information is the copyright of Kafrouni Lawyers.

Liability limited by a scheme approved under professional standards legislation.

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Joe Kafrouni helped me in my acrimonious shareholders dispute, resulting in Supreme Court litigation. During my case, which took years to resolve, I appreciated Joe’s great concern for my well being and that of my family. I felt he was attentive, direct and provided me with sound advice. In the end, Joe skilfully negotiated a settlement that exceeded my expectations and I am grateful.

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Joe Kafrouni has been our company’s lawyer from the beginning and has been instrumental in our journey as company owners and directors. When dealing with both complex and sensitive company issues, Joe is able to provide us with clearly articulated strategies that are well thought‐out and with the bigger picture in mind. He genuinely cares and is always willing to share his personal views, which are both honest and just. Joe is highly professional and knowledgeable in his field. You will definitely benefit having him on your team.

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Joe, as you know we were in a very difficult position with our company before we engaged you as our lawyer and fortunately, even with the odds stacked heavily against us in our shareholders dispute, you managed to pull us through to victory. You are a true credit to the industry not only because of your skilled negotiating tactics but also due to your personable nature, which made us feel comfortable in such a volatile situation.

The biggest lesson I have learnt from you recently, Joe, is that it pays to have a professional such as yourself on my side to deal with matters that I am unequipped to handle … so I can carry on with the task at hand of building my business! Thanks again, I’ll take pleasure in recommending your services to anyone in need.

A big thank you for your time today, Joe. Thankfully we managed to strike a deal although it took a little while to do. Thanks for your patience and perseverance.

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