Confidentiality, duties and restrictions: enforcement

Responding to a resignation

It is not inconceivable that the first indication an employer will have about potential competitive activity by an employee is when that employee resigns. The employer's response is critical, and so managers who are likely in practice to receive an employee's notice of resignation should be given appropriate training on how to respond.

The issues that will typically arise in a situation where it is anticipated that the departing employee proposes to join a competitor or set up their own competitive business include:

1. •

   the initial response to the resignation and how best to protect the employer's position

2. •

   how to respond where the employee has purported to give 'short' notice or has resigned with immediate effect

3. •

   exit interviews—a formal or informal conversation with an employee who has resigned can be a critical part of the employer's investigation where it is suspected that the employee has resigned with a view to competing with the employer

4. •

   whether to suspend the employee

5. •

   whether to place the employee