Howard Levitt: Voluntary departures can be as legally fraught as dismissals when a company's livelihood is at stake

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Non\u002Dsolicitation and non\u002Dcompetition obligations can lead to sleepless nights on both sides

Discussions about toxic working environments have received considerable attention over the last few years, but acrimony following a dismissal or even resignation can be equally fierce.

They are the sorts of calls that can lead to sleepless nights on both sides. Employers worry about the financial strain and impact on the business if their clients are stolen, and past employees’ lives are disturbed by even the prospect of litigation, which for many would be financially ruinous. Then, looming in the future, is the prospect of a full-blown legal action, with attendant years of significant legal costs, even if you win. There is little fun in protracted litigation, whether envisioned or ongoing.

For that reason, the worst part for an unlucky few is that the entire dance might only be a business strategy. Even if an employee is not subject to an enforceable non-solicitation or non-competition agreement, and sometimes even if they are not subject to any contractual restraints at all, an employer will send letters, seek injunctions and commence litigation, as merely a lesson for them and others.

 

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