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What must you do to defend your business against employees setting up in competition and poaching clients?

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The Employment Appeal Tribunal has recently handed down a decision confirming the strict approach it takes to allowing an appeal on grounds of fresh evidence.

The employer dismissed an employee as it was suspected that he was planning to leave and join the opposition and was trying to poach customers. That was said to amount, not surprisingly, to a fundamental breach of trust and confidence.

However, at the tribunal hearing, the employer had no real evidence of the poaching, which it explained on the grounds that it did not know it was expected to obtain such evidence. They had seemingly failed to obtain satisfactory legal advice in order to provide a defence against the claim for unfair dismissal.

Following the decision from the tribunal, the employer then obtained four witness statements which, if accepted, would be fairly overwhelming evidence that the ex-employee had been approaching clients to solicit work (whilst still employed).

However, the Employment Appeal Tribunal held that this did not enable the employer to have a second bite at the cherry. Whilst clearly credible and relevant, there was no proper explanation for not having obtained the evidence first time round. Neither ignorance, nor possibly incompetent advice from the employer's employment consultants, came close to being sufficient.

Simple steps you can take:
• Include appropriate restrictive covenants in employment contracts.
• Obtain evidence, in all its forms, to support your suspicions as early as possible.
• Follow the statutory procedures to ensure a fair dismissal.
• Engage appropriate legal support to provide a comprehensive defence at tribunal if required.

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