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Ex employee breaches restrictive covenant

16 January 2020 | Nick Jones

The challenge

A financial advisor came to GL Law with a case in which a consultant left the business taking clients and repeat commission payments with them.

The solution

Our Employment team issued legal proceedings against the consultant to stop him taking any further clients and to account to the client for the money he gained in taking those clients.

The solution included looking at the wider impact this was having on the client, as they were losing money but also wanted to send a clear message to the rest of their consultants to stop this happening again.

The process

The team had to issue injunction proceedings and obtain an accountant’s report to calculate the amount of money the consultant received from the client’s clientele.

The process began by writing to the consultant, but when he would not stop breaching the restrictive covenants contained in his contract of employment, GL Law issued court proceedings against him and his new employers.

GL Law made tactical offers to make sure the client was in the best possible position when it came to reclaiming his costs. The reasonable fees meant the client was able to recover almost all of them from the other side.

The result

The client was pleased to recover money from the consultant and stop him and the poaching of more clients happening again.

Specialist employment law advice

If you are concerned about an employment dispute, please contact our specialist employment law solicitors by calling 0117 906 9400 or email hello@gl.law 

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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