Hi, What actions can be taken if an ex-employee starts sharing client confidential information to our competitor (new employer).
From India, Pune
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From India, Pune
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Dear Recruiter,
Firstly, all data of the employees leaving the organization should be checked before or on their last working day. This will help the organization preserve confidential data with them, and hence no sharing or leakage of the data will take place.
Second, there should be a clause mentioned in the relieving letter stating that no information will be shared with any supplier or competitor for a minimum period of 2 years. Failing to comply with this clause will result in the company taking legal action against the departing employee.
If these clauses are not included in the relieving letter and the documents were not reviewed before the employee's departure, the company still retains the right to contact the former employee and issue a warning or take legal action against him or her.
From India, Mumbai
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409Firstly, all data of the employees leaving the organization should be checked before or on their last working day. This will help the organization preserve confidential data with them, and hence no sharing or leakage of the data will take place.
Second, there should be a clause mentioned in the relieving letter stating that no information will be shared with any supplier or competitor for a minimum period of 2 years. Failing to comply with this clause will result in the company taking legal action against the departing employee.
If these clauses are not included in the relieving letter and the documents were not reviewed before the employee's departure, the company still retains the right to contact the former employee and issue a warning or take legal action against him or her.
From India, Mumbai
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Greetings,
Bad news: You will never have any control over loyalty. Good news: You have figured that out.
Bad news: Every employee managing a high revenue job is a potential threat when they leave. Good news: Count the positive returns on your employees only until they serve you and the negative returns once they leave. There can be exceptions though. Long story short, no use crying over spilt milk.
Next time when any of your blue-eyed employees puts their papers down, count the losses and prepare. Create a stronger relationship with your clients by informing them of possible talent movements, thereby planning for cooperation. Identify every weak link through which outages are likely. Let forewarn be forearmed. Not every time will it be a fairy tale. Yet, the fewer losses you count, the better it is.
Wish you all the best!
From India, Mumbai
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Bad news: You will never have any control over loyalty. Good news: You have figured that out.
Bad news: Every employee managing a high revenue job is a potential threat when they leave. Good news: Count the positive returns on your employees only until they serve you and the negative returns once they leave. There can be exceptions though. Long story short, no use crying over spilt milk.
Next time when any of your blue-eyed employees puts their papers down, count the losses and prepare. Create a stronger relationship with your clients by informing them of possible talent movements, thereby planning for cooperation. Identify every weak link through which outages are likely. Let forewarn be forearmed. Not every time will it be a fairy tale. Yet, the fewer losses you count, the better it is.
Wish you all the best!
From India, Mumbai
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Thanks for the response.
@Ankit - The data consisted of details about the clients, which were shared with the employee as part of the process. Additionally, instead of a relieving letter, a similar clause is mentioned in our Employment Terms & Conditions, which every employee reads and signs when joining. Does this entitle us to take any action? If yes, kindly help me with possible actions that can be taken.
@(Cite Contribution) - Thanks. Valid points; will definitely keep them in mind.
Recruiter
From India, Pune
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@Ankit - The data consisted of details about the clients, which were shared with the employee as part of the process. Additionally, instead of a relieving letter, a similar clause is mentioned in our Employment Terms & Conditions, which every employee reads and signs when joining. Does this entitle us to take any action? If yes, kindly help me with possible actions that can be taken.
@(Cite Contribution) - Thanks. Valid points; will definitely keep them in mind.
Recruiter
From India, Pune
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Non-disclosure Agreement is not valid in India. Please read these threads and then decide your course of action.
- [How to stop employees from joining a competitor](https://www.citehr.com/463384-how-stop-employees-joining-our-competitors.html)
- [Bond Prohibiting employees from joining competitor](https://www.citehr.com/462590-bond-prohibiting-employee-joining-competitors.html)
There are several more in this topic.
From India, Mumbai
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- [How to stop employees from joining a competitor](https://www.citehr.com/463384-how-stop-employees-joining-our-competitors.html)
- [Bond Prohibiting employees from joining competitor](https://www.citehr.com/462590-bond-prohibiting-employee-joining-competitors.html)
There are several more in this topic.
From India, Mumbai
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Hi,
Can you confirm the following:
1) The inclusion of an Intellectual Property Rights (IPR) clause in your standing orders, code of conduct, or appointment letter.
2) That this IPR data is proprietary to your organization, created and maintained by you exclusively, and not available in the open market.
In other words (as cited in Contribution), you cannot expect an employee to leave behind their knowledge and skills when transitioning to a new organization.
If you were not aware, individuals in corporate sales or business development roles often switch organizations based solely on the business accounts they can bring along. Factors like HR culture fit are often overlooked despite efforts to emphasize them.
Consider this as a learning experience and continue forward.
Regards
From India, Mumbai
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Can you confirm the following:
1) The inclusion of an Intellectual Property Rights (IPR) clause in your standing orders, code of conduct, or appointment letter.
2) That this IPR data is proprietary to your organization, created and maintained by you exclusively, and not available in the open market.
In other words (as cited in Contribution), you cannot expect an employee to leave behind their knowledge and skills when transitioning to a new organization.
If you were not aware, individuals in corporate sales or business development roles often switch organizations based solely on the business accounts they can bring along. Factors like HR culture fit are often overlooked despite efforts to emphasize them.
Consider this as a learning experience and continue forward.
Regards
From India, Mumbai
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I think in the past I have mentioned how the premier advertising agency RK Swamy Associates got formed. Just to refresh, one fine day, the branch manager of the Chennai branch of Hindustan Thomson Associates, Mr. RK Swamy, replaced the Hindustan Thomson Associates board with RK Swamy Associates board in the Madras office building. He then called for a meeting of all employees and told them that all those willing to join his new company would receive double the salary from that day onwards. Those who did not want to join him could leave the office. The loyalists who did not join RK Swamy did not have an office for days together, until a makeshift office was created at Hotel Connemara.
Needless to say, all the clients of the Madras branch of HTA, except for Ponds India, moved with RK Swamy. HTA went to court, but nothing happened. The judgment was that clients are not personal assets. They are open to be lured and taken. Every client would view any relationship as a business relationship, not as a husband-wife relationship. When there is money, there is honey. So RK Swamy Associates were absolved of all charges. Please remember, the judgment was given in the pre-1996 era, i.e., prior to liberalization. In the current scenario of liberalization, thoughts of prosecution should not even be formed in your mind. Today, the world is not so big; it's a virtual village. Information is the key and is available everywhere. It's just impossible to keep it confidential. Claiming that confidential information was taken away by an employee will remain an assumption. Nothing is confidential in the WikiLeaks era. Just let the employee enjoy his good times.
From United+States, San+Francisco
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Needless to say, all the clients of the Madras branch of HTA, except for Ponds India, moved with RK Swamy. HTA went to court, but nothing happened. The judgment was that clients are not personal assets. They are open to be lured and taken. Every client would view any relationship as a business relationship, not as a husband-wife relationship. When there is money, there is honey. So RK Swamy Associates were absolved of all charges. Please remember, the judgment was given in the pre-1996 era, i.e., prior to liberalization. In the current scenario of liberalization, thoughts of prosecution should not even be formed in your mind. Today, the world is not so big; it's a virtual village. Information is the key and is available everywhere. It's just impossible to keep it confidential. Claiming that confidential information was taken away by an employee will remain an assumption. Nothing is confidential in the WikiLeaks era. Just let the employee enjoy his good times.
From United+States, San+Francisco
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