Where an employee leaves to compete against the employer there
are four possible causes of action the employer could seek to rely
upon. Firstly, the employer might point to a restrictive covenant
and seek to enforce that. Secondly, the employer might seek to rely
on a confidentiality clause in the contract of employment. Thirdly,
the employer might argue that the former employee is using trade
secrets learnt during the course of employment. Fourthly, the
employer might seek to argue that the employee has interfered with
intellectual property rights be it copyright, design, trade marks
or patents.
Restrictive covenants
Restrictive covenants are "covenants in employment
contracts that restrict or deter an employee from freely exercising
his trade, profession or calling". They can take many
different forms. A non-solicitation clause would prevent the
employee from soliciting work from customers of the employer for a
period after the termination. A non-poaching clause
