Is this illegal/unlawful or just immoral?

Soldato
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Hey, company I work for had a guy leave the other month and it turns out that during his last month with the company while working his notice he was basically sending out quotations to clients as normal then following them up with a second cheaper quotation offering to do the work himself after he left. Some of the jobs he was supposed to be dealing with he didn't even send out a company quotation just his own.

I didn't know you could do that lol, can you? I dunno if it's the type of dodgy stuff that people usually get sued over or just really immoral stuff lol.
 
Man of Honour
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It depends on his contract of employment. There is nothing inherently illegal about it. But he could be in breach of contract and therefore could be sued by his former company.
 
Soldato
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Cool, I always figured there would be a law or something to stop you stealing work from your own employer and getting paid to do it. I shall have to see how this pans out, fingers crossed if there is a flaw in the company rules or something they neglect to fix it :p
 
Soldato
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There's something in my contract that says I can't poach clients for a time. I don't know if it's the same for everyone, but it should be.

Same. I thought this was a standard thing to include in a contract?

If he was doing it before he left the company then it might also be covered under the IT policy and something about using company systems to conduct private business.
 
Soldato
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I've had a court summons after accidentally breaching a non-compete clause in an outgoing contract.

Lots of fun that was.
 
Man of Honour
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It depends on his contract of employment. There is nothing inherently illegal about it. But he could be in breach of contract and therefore could be sued by his former company.

This. Although its a legal minefield and far from straightforward.

Largely its unethical but depending on the conduct of the company I wouldn't blame some people for doing it. Without other factors though its pretty immoral.
 
Caporegime
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This. Although its a legal minefield and far from straightforward.

Largely its unethical but depending on the conduct of the company I wouldn't blame some people for doing it. Without other factors though its pretty immoral.

This. Its one if the hardest things to pin on an ex employee no matter how good your contract is. WHich is why most companies just use it as a scare tactic and go as far as a solicitors letter and thats about it.
 
Caporegime
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as above it is probably breaching his employment contract

I guess if he's claimed to have done something (like update some internal system to say he sent out the quotations) when he hasn't actually done so and has actually sent out those offers on behalf of himself then perhaps there is some sort of fraud issue there too which could lead to criminal prosecution
 
Soldato
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To do this once you've left the business is risky, to do it while still employed by them and instead of their own quotes is purely stupid.

He'll be getting a nice civil case brought against him where they try and claim for loss of earnings based on his actions.
 
Caporegime
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I thought I remembered a news story recently where most non-compete clauses were unenforceable? Obvs what this guy was doing whilst still being employed is probably a different kettle of fish.

But if your non-compete stops you from working in your chosen profession for any length of time it's unenforceable.

http://www.lindermyers.co.uk/are-restrictive-covenants-enforceable/

Q: Are restrictive covenants enforceable?
In general, if you rely on a one size fits all policy when drafting restrictive covenants, it risks them being unenforceable.

Certain restrictive covenants will be enforceable, if you are able to prove that they are:

  • reasonable
  • necessary to protect legitimate business interests; and
  • of a duration no longer than is necessary to protect those interests
However, they cannot be used as a restraint of trade. If you try to deny an employee the right to make a living in their chosen industry or profession, this will be taken seriously by the court. For example, an employment contract that imposes a blanket ban on a person working for a direct competitor, even for a short period of time, is unlikely to be enforced.
 
Man of Honour
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The reasonable clause is where often businesses come undone - they often push for all encompassing measures and courts generally tend to rule on the side of unequivocal specifics when it comes to employment stuff.
 
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