EMPLOYERS are being warned they need to tread carefully when taking on new staff who may still be bound by contracts with their former employers.

The alert has come from Worcester-based employment lawyer Sally Morris, who says businesses recruiting someone from elsewhere could find themselves paying hefty damages if they have not checked thoroughly for the effects of restrictive covenants in contracts.

Some employers require their staff to agree to certain conditions, such as keeping confidential information, or not poaching customers, even if they leave and go elsewhere.

But if they breach those covenants, it is not just the employee who could find him or herself in trouble but their new employer as well.

“It still surprises me that despite a number of high profile cases, many employers across Worcestershire still don’t protect themselves and take early advice if they are intending to recruit someone who is bound by restrictive covenants,” said Ms Morris, partner and head of employment at law firm mfg Solicitors.

“Restrictive covenants are designed to limit what an employee can do competitively if they move on.

“The covenant could cover a multitude of issues and may prevent someone from dealing with certain customers or utilising databases in order to stop them using vital information.

“But businesses are wrong if they think this situation just affects the employee alone.

“There has been a recent example of a UK-based company which was held jointly liable for breach of contract because a new employee had copied his old employer’s en-tire accounting database and used that information to solicit business.

“That isn’t a situation business leaders here in Worcestershire want to have.

“The result of not checking can result in a significant business headache and be very costly for everyone involved.”