Got an employee who is setting up a rival business? Here’s what you need to know

Got an employee who is setting up a rival business? Here’s what you need to know

We’ve all heard the tales of talented employees who join a business, build their own database of potential clients and suppliers, and then leave to set up a rival business, and try to poach more of your staff while they’re at it. While competition is the nature of business, this strategy isn’t as easy as one short sentence can make it sound. If found guilty of breaching employer trust or confidentiality, an employee could face a hefty payout against them. Of course, if nothing else, you are at risk of losing potentially talented staff. So what steps should you, as an employer, take when you suspect that one or more of your employees is preparing to set up, or has already set up, a business to compete with you? Step one: gather as much information as possible This is where you can pretend to be Sherlock Holmes and go on a fact-finding mission. As an employer, you will have the right to conduct workplace monitoring in a number of ways, for example: Reviewing CCTV footage of your