How to Spot and Investigate if You Suspect a Team Move
There are a number of warning signs that should trigger a manager's suspicions of an impending team move.
July 02, 2020 at 02:47 AM
5 minute read
The bonds that bind business units are often harder to maintain in a remote working environment. Many senior executives and partners feel unmoored and are evaluating their options in the light of anticipated changes to business priorities and culture. Some will feel challenged to embrace that big idea. These forces will be a driver for team moves.
There are a number of warning signs that should trigger a manager's suspicions of an impending team move. Red flags include individuals logging onto work systems at unusual times, for example at the weekend. They may also be emailing documents to a private email address or printing and scanning excessive amounts of material. Another indication is where more than one person in the same business unit makes unusual or unexpected holiday requests, or where there is a notable uptick in expense claims for entertaining.
Some of the omens of an impending team move will be difficult to identify where the team is working remotely. For example, an increase in telephone calls between individuals or arranging meetings at unusual times of the day. They may also set up a group email account or group chats on instant messaging services. Other more subtle signs include unusual activity or comments about new ventures on social networking sites.
There are some actions however that should raise immediate alarm bells, such as an individual resigning, giving reasons which do not quite ring true and/or refusing to confirm the name of their new employer, or firm. Other obvious signals are requests for a copy of a service agreement, or post-termination covenants from one or more employee within a short space of time.
Doing as much as possible as quickly as possible, without alerting those who are part of the team move is essential. Ideally the business will already have a plan in place, allocating responsibilities to a small management group that will instruct lawyers and forensic IT experts to carry out an investigation. Another group should be tasked with stabilising relationships with customers and business connections. The appointment of PR advisers may be useful to respond to press interest.
The proliferation of electronic communications combined with inaccurate assumptions that electronic tracks can be covered or communications permanently deleted, means that evidence of a team move is often found in electronic information.
It is important to check target employees' contracts of employment and policies to understand what powers the business has in relation to: return of devices and property on request or termination, rights to conduct a search, rights to monitor communications and surrender of social media accounts.
Preserving evidence by securing all data on the IT system and taking a complete image of the system may prove invaluable. It will also enable investigation without interfering with the day-to-day running of the business. Forensic experts can assist in searching telephone records, emails, text messages, chat room histories and instant messages. Some of these steps will require individuals to return their devices, which will alert them. The business will need to be careful not to breach data protection and privacy laws. The threat of the competitive activity may need to be balanced against the impact on the employee's rights of the proposed action.
Interviewing those that have resigned or are at risk of flight separately and without notice is helpful to understand the nature and scope of the threat. Inconsistencies in accounts may support claims going forward. It may be useful to question personal assistants, who may have been trusted to work on documents that relate to the new venture. Deft handling of these interviews will be key. Junior employees may have been pressurised to leave and might be persuaded to remain by offering immunity from claims, a promotion or financial incentives.
Avoiding a breach of the implied term of trust and confidence where employment is continuing is critical. Where an employee is able to treat themselves as constructively dismissed in response to a fundamental breach of their contract, this will render post-termination restrictions void. The business will also lose the benefit of relying on a garden leave period. These outcomes significantly improve an employee's negotiating position. A constructive dismissal claim is not available to partners and LLP members. However, defective processes may give rise to claims.
For those employees that have resigned, it may be sensible to trigger express garden leave clauses or suspension pending further investigation (where available). Dismissal for gross misconduct will carry the risk of claims, or complicate the enforceability of covenants.
A team move can simultaneously strengthen one business and herald the death of its competitor. It presents a complex challenge. Pursuing claims and seeking injunctive relief or financial remedies may be required, but successful neutralisation of the threat starts with early detection and smart investigation.
Ivor Adair is a partner at Fox & Partners
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