“THE END OF ENGAGEMENT”A CASE STUDY OF A DISENGAGED EMPLOYEE

MATTHEW HUDDLESON (PARTNER); RICHARD NEARY (PARTNER); KATHARINA KIDD (ASSOCIATE)

25 JANUARY 2013

INTRODUCTION

• Names have been changed to protect the

innocent

• Case study based on one client’s experience

• Disengaged key employee

• Different perspectives, legal risks, and possible

protective steps

• Confidential information

BACKGROUND

• Corporate Takeover

SquirrelTech

Banjo GroupRob

HarryRachel

£££

ADJUSTING TO CHANGE

Harry

Team Team Team

Rachel

Harry

Team Team Team

Before After

WARNING SIGNS

Acting Suspiciously

Reduced Performance Being Irrational

Hoarding Information

MANAGING RISKS

• Management (Rachel etc…)• Primary concern was the protection of

confidential information• Intellectual Property• Contracts

• Group HR• Concerned over employment risk• Unfair/Constructive Dismissal

WHAT SHOULD WE DO?

• Primarily two potential approaches:1. Conciliatory approach2. Adversarial approach

• Balance risks of either approach:• Risk to business information and competition etc with conciliatory approach• Risk of employment litigation with adversarial approach

• Consider contract of employment:• Post termination restrictions?• Protection of confidential information?• Notice provisions?• Garden Leave

WHAT WE DID!

• The hardball approach!• Suspension – alleged gross misconduct• Lock down access to IT/information• Collate evidence• Threaten injunctive proceedings

• Tactic = make him feel like he had a lot to lose

• At an opportune moment…• Offer the compromise• Build in contractual protection• Settle potential claims

(NB: Not suitable in every such situation. Must be calculated risk)

FINAL THOUGHTS

• Employee engagement v human nature

• Preparing for the worst

• Protecting confidential information

• Action plan, ready whenever needed

THANK YOUE: matthew.huddleson@footanstey.com Tel: 01392 625338

E: richard.neary@footanstey.com Tel: 0117 915 4915

E: katharina.kidd@footanstey.com Tel: 01823 625668