At first, it might seem like losing an employee, while inconvenient, isn’t that big of a deal. But the truth is that losing someone who knows the ins and outs of your business operations can put you at risk. These individuals may wind up sharing your organization’s secrets, and if they go to work for a competitor, they might put you at a disadvantage in the market. This is why it’s crucial that when dealing with personnel you use contracts that provide you with the most amount of protection.
But what happens when former employees don’t adhere to the terms of those contracts, whether they be non-competes, non-disclosures or non-solicitation agreements? First, it’s important to recognize that the burden is on you to bring infringing behavior to a stop. If you just sit back and hope that your former employee will suddenly start adhering to the terms of the contract, then you’ll face additional losses. With that in mind, let’s look at how you can handle contractual disputes with former employees.
Tips for handling contract disputes with former employees
Figuring out how to deal with a contract dispute can be difficult, especially when the other party is a former employee. But you can’t let the process confuse or intimidate you to the point that you don’t take action. Instead, consider doing the following to protect your interests:
- Gather evidence: Before you can take any action on alleged contractual violations, you need evidence to prove that there’s been a breach. Talk to witnesses, the former employee and their current employer to see if you can garner helpful statements. You can also look to social media, marketing and other business documentation to find the evidence needed to support your claim.
- Contact the current employer: The current employer may not be aware of the contract that’s in place. By contacting them and educating them, you might get their cooperation in bringing the violating behavior in a question to a quick stop.
- Send a cease-and-desist letter: This is a formal written document that commands the breaching party to stop the behavior in question. It’s a precursor to filing a lawsuit, though even if the breaching party stops the unauthorized behavior, you may be warranted in still filing a legal claim to recover your losses.
- File a lawsuit: If damages have been suffered or the breaching party refuses to stop the breaching behavior, then you might need to file a formal claim.
- Try to negotiate resolution: Your case doesn’t necessarily have to head to a contested trial once you file your claim. The other party might be willing to negotiate with you to find resolution. This can occur according to the terms of the contract, which might include utilizing arbitration or mediation.
One important consideration in these cases is the need to act quickly. The faster you move on your legal rights, the less damage you’ll suffer. So, as soon as you suspect that something’s gone wrong, be sure to discuss the matter with your business and employment law attorney.
Do you have lingering questions about how to deal with a problematic former employee?
If you do, then you should educate yourself on the law and the processes applicable to bring resolution to the problem you’re facing. Your attorney might provide you with additional guidance so that you can navigate the process with confidence. With strong planning on your side, you’ll hopefully secure the resolution that you want.
