Stealing Customers – Small Businesses

“The devil is in the details” is the saying, in this case in the employment contract. If your employment contracts contain clauses that describe exactly what an employee may not do after the employment relationship has ended, such as: For example, customer stealing, you should keep your business safe in a good place. If they don’t have such clauses, add them as a priority.

These post-employment restrictions can cover things like poaching one of your customers, hiring an employee, or moving to a direct competitor. These should apply for a defined period of time, usually six months.

When an employee leaves, it is good practice not only to confirm their departure, but also to remind them of the contractual termination restrictions.

Unless you have post-termination restrictions, you need to make sure that you protect your customer base in other ways. We would always advocate proactively informing them that an employee has left and their relationships / contracts will belong to someone else in the future. Be proactive in dealing with outages or lost customers.

Ian Moore is the managing director of Lodge Court, a recruitment agency

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