Hedge funds try to retain existing employees – usually by offering a sweetener like equity in the company – but take advantage of the currently weak recruitment environment to force new employees to sign more restrictive contracts. If times are tough, employers wield power, but if the market turns, these types of plans could hamper their ability to hire, he says. • Write it down in writing. Once on board, have your new employee sign a confirmation letter or employment contract informing them that your company has no interest in acquiring proprietary information from their former employer. Also recommend that you expect her to abides by a legitimate agreement she may have with her former employer and that it is her responsibility to ensure that she meets all ongoing obligations to the former employer. Finally, consider a provision that warns the new employee that you won`t necessarily defend them or compensate them if their former employer sues them for violating a restrictive agreement. Basically, how many times (what percentage of the time) do employers actually pursue a non-compete clause for a hedge fund or a revenue-intensive sector such as prop-commerce? I imagine that if an employee of a commercial enterprise is fired for underperformance, the employer would not impose the contract. To my knowledge, employers have the choice whether or not to pursue a non-compete contract against a former worker. If they choose to do so, they would have to pay the salary during the non-compete period. Mr Michalov`s last day of employment was on 15 March 2018, so the 18-month “intervention restrictions” clause in his employment contract expires on the night of 15 September. Employers who want to recruit talented workers in a competitive landscape are often frustrated by the competition bans to which their candidates are bound. However, it`s best to know these restrictions in advance so you can make informed decisions that protect your business.
If you proceed differently, you will probably discover that ignorance is not always bliss.