Restrictive Covenants, Confidentiality and Constructive Dismissal

Adam and Ben

Adam and Ben worked for a high profile headhunting firm, and competed against each other to be the top performers in the firm.  Senior management were very dubious of Adam and Ben's future intentions and feared that they may take a significant proportion of the firm's work, if they left together.  The senior management first went after Adam to secure a long term commitment.  The firm asked Adam to either resign immediately to receive his full commission or agree to stay for at least another nine months, if he left during this period he would lose all his commission.        

We immediately advised Adam that the company's position was a fundamental breach of his employment contract and if he chose to resign he could make a claim for constructive dismissal.  Adam explained he had always dreamt of starting his own company, but unfortunately the restrictive covenants made this a distant and impractical hope.  We advised that if he were to resign due to the firm changing the terms of his financial package, a claim for constructive dismissal would stop the firm relying on the employment contract.  The effect of the firm's action is similar to them tearing up the contract.  Adam followed our advice.

The firm then discovered that Ben had taken confidential information and started Injunction proceedings.  The City Law firm's strategy was to force Ben into very restrictive undertakings post employment and also land him with an astronomical legal bill of six figures to stop any chance of funding a new start up.  We immediately started a damage limitation exercise.  We closed down the litigation quickly and effectively and charged our client's a small fraction of what the City lawyers charged.  Adam began an unfair dismissal claim and we negotiated much weaker undertakings with a hugely reduced legal bill from the City Solicitors. 

Ben and Adam took a holiday of a few months and set up their successful headhunting firm, with the benefit of knowing that their restrictive covenants had been reduced by several months to clearly defined undertakings.

- Adam & Ben (Read the Testimonial).

 

"Plum job or plum crazy"