Sample Essay
The termination contract of the service for Karen can have an incorporated competitor clause whereby she can be restricted from joining the competitors of the company in the region of operation. This is called an Employee Covenant Not to Compete which is used for “prohibiting the former employee from working for a competitor of the…because of the inconvenience involved in following the terminated employee.” (Fenley and Washbum, 1977)
On the other hand if through investigation and research it is determined that the skills set held by Karen is only applicable to the industry in which the company operates, then it would be unjustified to restrict Karen from joining a competitor. This is because the Employee Covenant can be challenged as being unfairly restrictive in court which can lead to additional problems for the company. The ethical code of multinationals and various companies already tends to include the confidentiality clause which promotes loyalty amongst the employees and prevents them form sharing conferential and sensitive company information with competitors (Stevens, 1994). This can be built upon to include the protection of the confidential information even after the employee is terminated from the service of the company (Oakley, 1998). As a result in this case a confidentiality clause can be implemented and mutually agreed upon by Karen and the company. Under the confidentiality clause, Karen would not be allowed to legally share any confidential or sensitive information about the company, its goals objectives and strategies, its management and the work environment with the competing companies where she might get hired in the future.
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