Question
of the week
Question of the week

Curious. Interesting. Informative.

21 August 2015

Roping them in!

Employment Law
Federal

Asked

If an employer places an advertisement in a newspaper announcing the new appointment of an employee, can it be argued that the employee has breached a covenant not to solicit the clients of his/her former employer?

Answered

Solicitation occurs where an ex-employee directly or indirectly requests, persuades or encourages clients of their former employer to transfer their business to their new employer.

The burden of proving an ex-employee has solicited clients is on the ex-employer; a large number of clients switching to the new employer is not enough. Evidence from former clients that they have been requested, persuaded or encouraged to switch by the ex-employee would be necessary. Without such evidence, the clients may have simply followed the ex-employee of their own accord.

The wording of the previous employment agreement and newspaper advertisement would need to be carefully considered. The decision in Planet Fitness Pty Ltd v Brooke Dunlop & Ors [2012] NSWSC 1425 may be of assistance. In this case the employee offered a clear enticement persuading clients of the ex-employer to follow her.

Regards Mentor