Importance of seeking legal advice in relation to PTRs

For employees: Legal advice over the enforce-ability and scope of the PTRs should be sought prior to joining a competitor. In case of a breach of an enforceable PTR, and employee may be liable to a claim of breach of contract and in some cases may even be restrained by a court injunction from joining a new employer.

For new employers: Legal advice over the enforce-ability and scope of an employee’s PTRs should be sought prior to offering the employee a job. An ex-employee’s PTRs should be sought prior to offering the employee a job. An ex-employer could potentially bring a claim against a new employer in connection with their involvement in wrongful conduct by the former employee. If the legal advice obtained is the effect that the PTRs are likely to be enforceable, the new employer should proceed with caution.

For ex-employers: An ex-employer should seek robust legal advice on enforce-ability of the PTRs before taking any action. Where it suspects that a departed employee has acted in breach of the PTRs, it should seek further legal advice to understand whether the employee’s conduct is a fact in breach of the PTRs, and if so, whether to commence legal proceedings. Where an ex-employer has commenced legal action and is unsuccessful in seeking the remedies it has sought, the court will likely order the ex-employer to bear the ex-employee’s and/or the new employer’s legal costs in defending the action