1. WWW.MISHCON.COM © MISHCON DE REYA 2014 14 MAY 2014 RECRUITMENT INTERNATIONAL FINANCIAL DIRECTORS’ FORUM Protecting your business from unlawful competition Jennifer Millins, Legal Director

2. WWW.MISHCON.COM © MISHCON DE REYA 2014 Established in 1937 101 partners and 203 lawyers Core departments: Corporate Dispute Resolution Employment Mishcon Private Real Estate WHO ARE MISHCON DE REYA?

3. WWW.MISHCON.COM © MISHCON DE REYA 2014 WHY WORRY? It affects your bottom line It afflicts most recruitment companies It comes in many forms and is increasingly sophisticated It harms your reputation and staff morale It leads to the loss of key staff, clients and candidates UNLAWFUL COMPETITION:

4. WWW.MISHCON.COM © MISHCON DE REYA 2014 Data theft Breach of restrictive covenants Breach of fiduciary duties and duty of fidelity Team moves WHAT IS UNLAWFUL COMPETITION?

5. WWW.MISHCON.COM © MISHCON DE REYA 2014 Prevention is better than cure Policies, contracts and restrictive covenants: update, enforce and communicate: Confidentiality clauses Restrictive covenants Database policy Social media policy Email and internet use policy Mobile working policy Right of search WHAT CAN YOU DO?

6. WWW.MISHCON.COM © MISHCON DE REYA 2014 Update Enforce Communicate WHAT CAN YOU DO?

7. WWW.MISHCON.COM © MISHCON DE REYA 2014 Monitor employees’ activities and ensure appropriate use of LinkedIn and other social media platforms Contractual policies Corporate page on social media sites, with password only access Only conduct networking business through this site Copy all social media contacts onto your own CRM database Staff should ‘link in’ with their manager Be clear WHAT CAN YOU DO?

8. WWW.MISHCON.COM © MISHCON DE REYA 2014 Behave ethically with new joiners Provenance of information? Written confirmation from the new joiner Written confirmation to the new joiner Be familiar with any restrictive covenants the new joiner brings with them And then… Do not use the confidential information Seek legal advice Consider notifying the owner and returning information If in doubt, check the enforceability or post-termination restrictions WHAT CAN YOU DO?

9. WWW.MISHCON.COM © MISHCON DE REYA 2014 Familiarise yourself with the operational, legal and technical steps open to you Head of cyber security Audit your IT security Invest in up to date IT security systems Password protection Plant false contacts Ban the use of data transfer devices Encryption Insurance WHAT CAN YOU DO?

10. WWW.MISHCON.COM © MISHCON DE REYA 2014 Implement an incident response plan A decisive and immediate response is essential Appoint expert cyber / IT professionals Prepare for when staff resign so that you can act quickly: - Train managers - Conduct exit interviews - Consider counter-offering - Write to employees - Lock down your systems - Avoid constructive dismissal arguments WHAT CAN YOU DO?

11. WWW.MISHCON.COM © MISHCON DE REYA 2014 Seek legal advice immediately Search order Delivery up order Computer imaging order 3 rd party disclosure order Interim restraining injunction Springboard injunction Claim in damages Account of profits WHAT CAN YOU DO?

12. WWW.MISHCON.COM © MISHCON DE REYA 2014 PR impact Take steps now to minimise the risk Prevention and protection are key Detect breaches swiftly and take fast action to minimise damage AND FINALLY…

13. WWW.MISHCON.COM © MISHCON DE REYA 2014 ANY QUESTIONS? Jennifer Millins, Legal Director 0207 440 7137 jennifer.millins@mishcon.com THANK YOU