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“THE END OF ENGAGEMENT”

“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

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“THE END OF ENGAGEMENT”

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  1. “THE END OF ENGAGEMENT” A CASE STUDY OF A DISENGAGED EMPLOYEE MATTHEW HUDDLESON (PARTNER); RICHARD NEARY (PARTNER); KATHARINA KIDD (ASSOCIATE) 25 JANUARY 2013

  2. 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

  3. BACKGROUND Banjo Group • Corporate Takeover Rob £££ SquirrelTech Rachel Harry

  4. ADJUSTING TO CHANGE Before After

  5. WARNING SIGNS Reduced Performance Being Irrational Acting Suspiciously Hoarding Information

  6. 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

  7. WHAT SHOULD WE DO? • Primarily two potential approaches: • Conciliatory approach • 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

  8. 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)

  9. FINAL THOUGHTS • Employee engagement v human nature • Preparing for the worst • Protecting confidential information • Action plan, ready whenever needed

  10. THANK YOU E: matthew.huddleson@footanstey.com Tel: 01392 625338 E: richard.neary@footanstey.com Tel: 0117 915 4915 E: katharina.kidd@footanstey.com Tel: 01823 625668

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