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No One Should Be Indispensable... So Plan For the Unexpected

Guest post by: Marijo McCarthy

Article Overview: Recently, a client called me in somewhat of a panic mode. It seems that a key designer in their engineering firm had arrived that morning, sat down across the desk from her boss, and tendered her resignation... effective immediately! Could they prevent the departure? Should they sue? What else could they do?

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No One Should Be Indispensable... So Plan For the Unexpected

Recently, a client called me in somewhat of a panic mode. It seems that a key designer in their engineering firm had arrived that morning, sat down across the desk from her boss, and tendered her resignation… effective immediately!

Even worse, the departing designer had a special expertise; was the only engineer in the firm with that expertise; and the company was right in the middle of a half dozen active contracts for its customers which required that expertise! In addition, the expertise was something which could not be quickly located elsewhere.

Finally, the departing employee dropped the other shoe: She was leaving to open her own practice and intended to poach my client's customers who needed her expertise!

Hence my client's panicked questions: Could they prevent the departure? (The employee had signed a non-compete agreement when she joined the firm.) Should they sue? What else could they do?

All good questions, and this is where corporate counsel's determination to solve problems rather than find parties to drag into court is tested:

Of the options available, my client is now considering releasing the key employee from her non-compete: IF she completes the work required under current contracts, thereby satisfying current customers. AND, she pays to her former employer a percentage of the revenue her new business will achieve from those contracts. AND, my client is able to obtain the consent of the affected customers.

The point is, my client may pragmatically buy his way out of a sticky problem which, under the circumstances, may be the reasonable, workable solution.

What about your company? Do you have key employees whose departure would also leave a void the size of the Grand Canyon?! If the answer is yes… The moral of the story is simple: Don't let this happen to you! Before you find yourself in a similar predicament, do a little advance planning and be sure you can back-up the expertise of your star quarterback.

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Home > Legal > Marijo McCarthy > No One Should Be Indispensable So Plan For the Unexpected >
Article Tags: customer, employee, expertise, noncompete, resignation

About the Author: Marijo McCarthy
RSS for Marijo's articles - Visit Marijo's website

Marijo McCarthy is principal of Widett and McCarthy, a Boston-area law firm that helps small business owners grow their businesses with pragmatic legal advice, mentoring and a solid team of professional advisors.

Click here to visit Marijo's website
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