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Recruitment international . Financial directors’ forum . Protecting your business from unlawful competition Jennifer Millins, Legal Director. Who are mishcon de reya ? . Established in 1937 101 partners and 203 lawyers Core departments: Corporate Dispute Resolution Employment

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recruitment international
Recruitment international
  • Financial directors’ forum
  • Protecting your business from unlawful competition
  • Jennifer Millins, Legal Director
who are mishcon de reya
Who are mishcon de reya?
  • Established in 1937
  • 101 partners and 203 lawyers
  • Core departments:
      • Corporate
      • Dispute Resolution
      • Employment
      • Mishcon Private
      • Real Estate
unlawful competition
Unlawful competition:
  • It affects your bottom line
  • It afflicts most recruitment companies
  • It comes in many forms and is increasingly sophisticated
  • It harms your reputation and staff morale
  • It leads to the loss of key staff, clients and candidates
  • Why worry?
what is unlawful competition
What is Unlawful competition?
  • Data theft
  • Breach of restrictive covenants
  • Breach of fiduciary duties and duty of fidelity
  • Team moves
what can you do
What can you do?
  • Prevention is better than cure
  • Policies, contracts and restrictive covenants: update, enforce and communicate:
      • Confidentiality clauses
      • Restrictive covenants
      • Database policy
      • Social media policy
      • Email and internet use policy
      • Mobile working policy
      • Right of search
what can you do1
What can you do?
  • Update
  • Enforce
  • Communicate
what can you do2
What can you do?
  • Monitor employees’ activities and ensure appropriate use of LinkedIn and other social media platforms
      • Contractual policies
      • Corporate page on social media sites, with password only access
      • Only conduct networking business through this site
      • Copy all social media contacts onto your own CRM database
      • Staff should ‘link in’ with their manager
      • Be clear
what can you do3
What can you do?
  • Behave ethically with new joiners
      • Provenance of information?
      • Written confirmation from the new joiner
      • Written confirmation to the new joiner
      • Be familiar with any restrictive covenants the new joiner brings with them
    • And then…
      • Do not use the confidential information
      • Seek legal advice
      • Consider notifying the owner and returning information
      • If in doubt, check the enforceability or post-termination restrictions
what can you do4
What can you do?
  • Familiarise yourself with the operational, legal and technical steps open to you
      • Head of cyber security
      • Audit your IT security
      • Invest in up to date IT security systems
      • Password protection
      • Plant false contacts
      • Ban the use of data transfer devices
      • Encryption
      • Insurance
what can you do5
What can you do?
  • Implement an incident response plan
      • A decisive and immediate response is essential
      • Appoint expert cyber / IT professionals
      • Prepare for when staff resign so that you can act quickly:

-Train managers

- Conduct exit interviews

- Consider counter-offering

- Write to employees

- Lock down your systems

- Avoid constructive dismissal arguments

what can you do6
What can you do?
  • Seek legal advice immediately
      • Search order
      • Delivery up order
      • Computer imaging order
      • 3rd party disclosure order
      • Interim restraining injunction
      • Springboard injunction
      • Claim in damages
      • Account of profits
and finally
And finally…
  • PR impact
  • Take steps now to minimise the risk
  • Prevention and protection are key
  • Detect breaches swiftly and take fast action to minimise damage
thank you
Thank you
  • Any questions?
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