© mishcon de reya 2014 14 may 2014 recruitment international financial directors’ forum...
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WWW.MISHCON.COM ©MISHCON DE REYA 2014
14 MAY 2014
RECRUITMENT INTERNATIONAL FINANCIAL DIRECTORS’ FORUM
Protecting your business from unlawful competition
Jennifer Millins, Legal Director
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• Established in 1937
• 101 partners and 203 lawyers
• Core departments:
• Corporate• Dispute Resolution• Employment• Mishcon Private• Real Estate
WHO ARE MISHCON DE REYA?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
WHY WORRY?
• 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
UNLAWFUL COMPETITION:
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• Data theft
• Breach of restrictive covenants
• Breach of fiduciary duties and duty of fidelity
• Team moves
WHAT IS UNLAWFUL COMPETITION?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
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 DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• Update
• Enforce
• Communicate
WHAT CAN YOU DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• 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 DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• 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 DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• 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 DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• 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 DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• 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
WHAT CAN YOU DO?
WWW.MISHCON.COM ©MISHCON DE REYA 2014
• PR impact
• Take steps now to minimise the risk
• Prevention and protection are key
• Detect breaches swiftly and take fast action to minimise damage
AND FINALLY…
WWW.MISHCON.COM ©MISHCON DE REYA 2014
ANY QUESTIONS?
Jennifer Millins, Legal Director0207 440 [email protected]
THANK YOU