18 February, 2008
Award winning law firm Forbes Solicitors recently held a seminar in conjunction with the Institute of Directors to highlight the issues facing local businesses when their key personnel decide to fly the nest.
They warned that employers are putting themselves at risk if they do not protect against senior employees leaving. Some of the scenarios seen by the Commercial teams at Forbes include former employees of local businesses setting up in direct competition, stealing customers, poaching staff, copying their products and revealing commercially sensitive information to all and sundry.
Daniel Milnes, senior Business Law solicitor commented: "Key personnel can be your greatest asset, but with great power comes great responsibility and things are not always harmonious when they come to an end. Serious damage can be caused to your business if key personnel decide to set up in competition or move to one of your closest competitors. It is important for businesses to have the right contracts in place and understand what remedies are available when things do go wrong."
Sarah Booth on behalf of the Lancashire IoD Branch Committee commented "It was a very interesting and informative presentation, thought provoking and very professionally delivered."
Peter Byrne, the firm's Head of Employment looked at preventative measures that can be put in place, he advised the audience on how to prepare contracts correctly to provide protection from senior employees damaging client relations when they leave. Daniel Milnes warned of the consequences of removing directors who were also shareholders in the business and Robin Stephens, Head of Commercial Litigation presented an interesting case study highlighting what can happen when things do go wrong, what remedies are available and more importantly what the cost could be to the business.