The termination of Karen from the company can also increase the risk of her luring away other employees who have worked alongside with her for a number of years forming a relationship bond on a professional and personal level to leave with her. In order to prevent this from happening, the satisfaction of Karen with the termination has to be encourages. This means that a significant termination pay off as well as settlement needs to be provided to her in order to target her satisfaction with the termination while a termination contact can also feature a clause of employee loyalty which prevents her from intentionally luring way employees to other competing firms in the industry.
“The legal rules governing employee loyalty and/ or disloyalty have little to do with these processes of collective labor law. Instead they are rooted partly in the common law principles of contract that govern the relationships between individual employees and their employers and party in the statutes of federal (Commonwealth) and State parliaments.” (McCallum and Stewart, 1998) As a result a restraint of trade clause can be included in the termination agreement which has to be agreed upon by Karen and the Company. A restraint of trade clause can be set up which comprehensively targets all the issues that have been highlighted by Lilly Zheng.