Seminar teaches employers to protect themselves from poaching

THURSDAY, SEPT. 19: Are you worried about your employees being poached?

How do you keep good employees from bolting to other firms?

Fozeia Rana-Fahy and Jennifer Haworth of MJM Limited presented a talk on ‘Bermuda employment law: Restrictive Covenants in the Insurance Industry,’ to members of the Association of Bermuda International Companies (ABIC) on Wednesday.

The one-hour seminar covered the types of restrictive covenants available and their enforcement in Bermuda, the impact of wrongful dismissal and termination agreements, remedies available to the Bermuda employer including springboard injunctions, the impact of foreign governing law and jurisdiction clauses in global award agreements, the impact of restrictive covenants in bonus and share schemes, immigration and insolvency considerations, as well some take-away tips that employers could put into practical use.

Ms Rana-Fahy, associate, MJM Limited, who specialises in contentious commercial and employment related matters, said: “With poaching being quietly prevalent in the insurance and reinsurance industries, there are steps that employers can take to protect themselves in their employment contracts, employment handbooks, bonus schemes, share schemes and global award agreements.

“Today’s discussion covers the types of restrictive covenants available to the Bermuda insurance industry and their enforceability in Bermuda”.

Ms Haworth, associate, MJM Limited, said: “Keeping employees in a highly competitive business can often be challenging.

Before the economic downturn, businesses may have tried to compete against each other for potential clients. Since the economic downturn, other more insidious tactics are often used to secure business. However, employees have a duty of good faith, fidelity and confidentiality to their employer.

“In addition it is wise for employers to have well-drafted restrictive covenants in the employment contract in relation to post-employment obligations.”