Contracts of employment

Mr Ions worked as a recruitment consultant, and then later as a managing consultant, for Hays. He decided to set up his own recruitment business, which he made no secret of to Hays. His contract contained a clause that he was not ‘to make use of, or disclose or divulge’ to any person confidential ‘trade secrets, business methods or information’ unless necessary to properly carry out his duties.

The employer brought a claim for liquidated damages for breach of contract against a prospective employee who changed his mind after accepting an offer of employment. The claim was based on a clause in the contract which required him to pay an amount equivalent to half his net basic salary and half his signing payment if he did not start work.

Staff frequently keep a list of their contacts on their employer’s computer system. These may include contacts they made before they started working for their employer. But what happens when the employee leaves? Can he or she take this list with them or do they belong to the employer?

An object lesson in how not to go about agreeing a bonus with staff. K’s employer, in view of his importance to the business, negotiated a special bonus arrangement for him. The terms of the bonus were discussed at several meetings but nothing was written down.

K had raised harassment claims and was off sick with work-related stress. She failed to provide a sick note beyond a certain date, saying that her absence was employment-related, not medical.

This case highlights the importance of sick pay policies specifying a method for calculating any payments made under them. B’s contract provided for her to work a guaranteed minimum of 15 hours per week with provision for her to work in excess of such hours as agreed with her manager. In fact she worked over 30 hours each week.