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Stop your employees from stealing your clients with this one employment contract clause

by , 03 March 2015
One of your employees is moonlighting. He's even stealing your clients. He does work for them after hours at a lower rate.

It's clear to you your employee is acting against your company's interests stealing your clients.

But what can you do?

Nothing, unless you've included the following clause in your employment contracts to protect your businesses' interests.

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To make sure your employees don't steal your clients, include this clause in their employment contracts

Include a clause that deals with conflict of interest and moonlighting. This ensures your employee's conduct doesn't result in a conflict of interest with your business.
It gives you the right to seek legal retribution if he acts against your company interests.
The Labour Law for Managers Loose Leaf Service explains that it's a serious act of misconduct for your employee to engage in after hours work that's in competition with you. This is a dismissible offence.
Take a look at a sample clause below.

Here's a sample clause to help you manage conflict of interest and moonlighting in your company

'The employee must not engage in any outside work or activity for remuneration without obtaining prior written consent from ____________ (company's name). The employee must not engage in any work or activity, with or without remuneration, if that work or activity can reasonably be seen to be in conflict with the interests of ____________ (company's name). The employee must disclose any interest in any other business or undertaking or institution or participation in any other activity that may result in a conflict or potential conflict of interest with the interests of ____________ (company's name).'
Without this clause, your employee can act against your company's interests and simply say he didn't know you didn't allow the practice if you confront him.

With the right employment contract clauses, you can protect your rights

We strongly recommend you get your hands on the Labour Law for Managers Loose Leaf Service. It contains 12 other key clauses you must include in your employment contracts to safeguard your rights as an employer. What's more, they will make sure that even if you end up at the CCMA for employee contractual issues, you've got a better chance of winning.

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