May 11, 2011

 

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You often spend considerable time and money training your employees. It is perfectly reasonable that you don't want other alarm companies or your subscribers soliciting or poaching your employees. There are some measures you can take to reduce this risk.

 

On the employee side you can use the Employment Contract. It contains a restrictive covenant prohibiting an employee or ex-employee from competing against you.

With subscribers you can include a provision that prohibits them from hiring your employees.

The commercial Standard Form Contracts all contain a provision that prohibits subscribers from hiring your employees. This is an important provision, especially if you have special equipment and you have invested in training your employee. But a recent inquiry had me look at the residential All in One.

The alarm company was using the All in One for commercial subscribers, which is OK. One of his commercial subscribers hired one of his employees. Because we were not concerned with residential subscribers hiring employees the All in One does not contain a non solicitation and hiring clause. It does now. We have modified the form to include that provision. Here is how the clause reads:

"26. NON-SOLICITATION. Subscriber agrees that it will not solicit for employment for itself, or any other entity, or employ, in any capacity, any employee of ALARM COMPANY assigned by ALARM COMPANY to perform any service for or on behalf of Subscriber for a period of two years after ALARM COMPANY has completed providing service to Subscriber. In the event of Subscriber's violation of this provision, in addition to injunctive relief, ALARM COMPANY shall recover from Subscriber an amount equal to such employee's salary based upon the average three months preceding employee's termination of employment with ALARM COMPANY, times twelve, together with ALARM COMPANY's counsel and expert witness fees."