Letter to New Employer (Former Employee's Continuing Obligations)

Summary

This precedent is a letter that an employer would send to another company who has recently hired one of the employer's former employees. The purpose of the letter is to remind the new employer of the former employee's continuing obligations, including a duty of good faith and restrictive covenants. It can also either threaten legal action upon discovery of a breach or advise that legal action has been commenced. This precedent includes practical guidance, an optional clause, an alternative clause, drafting notes, explanations and tips for drafting these types of letters. Generally, departing employees have very few continuing obligations to their former employers. For a departing employee who is not a fiduciary, these obligations will generally be restricted to whatever is contained in the employment agreement or any confidentiality agreement or restrictive covenant entered into by the parties. Unless there is a restrictive covenant in place, an employee is allowed to compete with a ...