We successfully defended our clients’ interests in an employment dispute alleging unfair competition in the form of transition of employees from Company A to competitor Company B and alleged luring of customers. In this case we represented Company B and the four employees who transitioned from Company A.
The court found that transitioning of employees does not in itself constitute unlawful conduct or incur liability. Nor did the claimant prove that it had lost customers as a result of the actions of its former employees.
Impact on development of case law
The case is unique in that the court recognized that assessment of such a situation must take into account all the circumstances. Although as many as four employees went to work for a competitor, this circumstance does not in itself amount to unfair practice. In such cases, the courts usually have to decide which aspect is more important – the employee’s right to work or the company’s right to restrict a former employee’s competition. The court decision in this case is significant for further development of legal practice.