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Legal Observer, SoftSettle Support

Poaching has a huge negative connotation. Either you are preventing skilled or talented employees from leaving or you will find them working for a competitor. Poaching, for the most part, comes with the territory of healthy competition, but some employers can push the ethical or legal line in the effort to find talent. Okay, poaching employee from a competitor is legal. The restriction on poaching from the competition is centered on valid agreements between the former (existing) employer and employee and the prospective employer’s involvement in the subject matter of that agreement.

Mediator Affair could able to help an employee from facing the legal ramifications from their previous (existing- as he has not left yet) employer such as injunctions and damages. Non-solicitation agreement which has been executed by this particular employee could prevent him from working for a competitor of his existing employer if he leaves his current employer.

William, the skilled and talented employee in this case committed a breach of an employment contract could be a clear case of an offense, but it is no less significant or damaging for its regularity. The consequences can include expensive legal fees, business-related restrictions, and other legal consequences, depending on the severity of the violation. He was well aware of the fact that a non-compete and a not-solicitation agreement could bring trouble for him.

In spite of non-compete and non-solicitation agreement as a necessary tool, the main developer Williams wants to desert his parent Mobile Company. The management strictly adheres to their policy that they would not be hostile to their employees, but the management felt that they are supposed to do best for their company.

Williams suggested that his parent company would get a good sum from his prospective employer in the form of a “placement fee” so far as he is hired by the prospective employer. Even the company which is going to hire Williams had negotiations with his parent mobile company.

Williams is aware of the fact that non-compete and non-solicitation agreements would be a menace to him. That is why he insisted his prospective employer to have a negotiation with his current employer and providing a “placement fee” to his existing mobile company.

The events slowly turned antagonistic for his existing mobile company so far as they are about to lose a number of orders/works with Ritesh’s move to quit his job. The present employer of Ritesh as advised by the governing body of  the company suggested that the Mediator Affair could be an ideal platform in the present juncture embarrassed by COVID-19, to proceed with the issue online.

At the beginning of the resolution process, Williams was adamant about leaving his current employer and he vehemently argued to support his position (in the absence of his present employer). He was cautioned about the difficulties he would get encountered with.. He further made to realize that employee poaching could be considered unlawful and offensive as any other legal offense violating such agreements whether it is related or not related to the misappropriation of confidential information, theft of trade secrets, unfair competition, or breach of duty of loyalty. In any of these cases, the wronged employer may attempt to sue the employee or his prospective employer (competing business) for such transgression.

Williams’ attitude started shifting over to second thoughts. Williams was enquired about the reasons for frustration in the existing company which was disclosed much later in the later session only. He was told about his present company’s attitude of care and affection that he has been experiencing and made him realize that the company never overreacted to his intention of leaving the present company.

The company was also advised in the caucus session to pay attention to signals that any of their team members maybe entertaining offers and ask if there’s anything you can do to fix things. As the company came forward with the suggestion to devise a personalized retention plan for Williams, he was all the more glad to accept such a proposal.

When deciding your compensation strategies, there’s only one question you should answer: “Is this employee’s work valuable to the company?.” If yes, compensate him/her accordingly. Further to retain employees, the compensation plan needs to incorporate the trends like recognizing the performances of employees, offering stock options along with other extra benefits to the employees. It has to be borne in the employer’s mind that the compensation or retention plan should include meaningful benefits (You don’t want to waste money on things your employees won’t use. Instead, find out what matters to them and offer some benefits they will actually appreciate) that show you respect your employees

The online resolution using the platform Mediator Affair turned into success, so far as this proposal for a personalized retention plan for Williams worked well in favor of his existing company and he accepted such proposal to get retained with his existing company.

SoftSettle Support offers free legal consultancy prior to the resolution process to the effect of employee poaching for employers and employees. If any employees accused of poaching, we are here to help, we can assess your situation and propose a viable legal plan to protect your short and long-term interests.

We value our relationships with our clients, and we know the type of stress and the confusion that comes hand in hand with cases like this. However difficult your case may seem, our team can use our ample resources to create a strong case on your behalf.