Protecting Your US Business From Unfair Competition by Former Employees Requires Timely and Prudent Action


The potential risks posed to a business by former employees are common to employers worldwide. Whether an employee is working in Jakarta, London or New York at termination of the employment relationship makes little difference. From any location he or she could take or fail to return your business’s trade secrets or other confidential information, or solicit its customers using the goodwill belonging to your business, or otherwise compete with your business taking unfair advantage of his or her knowledge of your business.

While the nature of the threats presented may not differ materially from one country to another, the permissible methods for protecting a business from them will differ from location to location around the globe. Most jurisdictions will permit employers to require employees to agree to some restrictions on their post-employment activities and use of confidential information. However, there is wide variance over the requirements imposed by specific jurisdictions to obtain protection and over the extent of protection that will be permitted.

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