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MSI GROUP SUCCESSFULLY RESOLVES DISPUTE OVER BREACH OF RESTRICTIVE COVENANTS

MSI GROUP SUCCESSFULLY RESOLVES DISPUTE OVER BREACH OF RESTRICTIVE COVENANTS

A long standing employee left MSI Group in December of 2010 . After several amicable discussions between the employee and the company MD Nick Simpson it was felt that MSI was no longer the vehicle to take his career forward as gaining promotion to Director level was not an option open to him at that time within the companys growth plans. After a long lunch and a shake of hands it was agreed that the individual would work his notice and leaving drinks would be arranged to mark the end of his five years with the company.

Within that period of notice the individual managed to circumvent our robust IT security and copy a large amount of data relating to MSIs candidate and clients even though this contravened both the Data Protection Act 1998 and restrictive covenants within his contract. He had been specifically asked to reaffirm the covenants by the company HR manager whilst on notice. Fortunately MSI has IT systems in place to detect and combat this type of incident having had a similar occurrence some 6 years ago. We learnt some hard and valuable lessons previously and the Board felt that prevention rather cure has to be the strategy for this type of behaviour. Not only do we now have state of the art detection and recording software, the company also took out a legal insurance policy giving the company access to 250,000 worth of legal protection to fight cases of this nature. In order to protect the future of our company we will pursue legal proceedings in all cases, this is company policy.

On detecting the wrongful action we acted very quickly via our company lawyers. We also approached the individual's new employer via the head of our trade body APSCO. The person in question had asked members of his new team at his new employer to call candidates and clients whose details he had wrongfully removed from us, on his behalf. MSI took statements from all of the candidates that were contacted and handed this along with details of all the data that had been taken, to our legal experts .

After numerous letters and a lot of wasted management time MSI reached a settlement agreement with the individual and his new company, without legal proceedings being necessary. All wrongfully removed data was returned to MSI and deleted from all hard drives, mobile phone devices, memory sticks etc. In addition, although the company did not admit liability, between them the company and the individual agreed to pay a total of 17,800 in damages and legal costs, a significant win for MSI considering no business was actually transacted using the information that was removed due to the fact that MSI was able to act so quickly .

In our view, the removal of confidential business information is tantamount to theft. We will always take a firm line in response to such action and we are legally entitled to protect our business. Consultants are paid a salary and commission to generate sales. Those sales are often the result of not only the consultants effort but the company brand in the market place, the existing candidate and client database, cross selling, house accounts, and the training, development and mentoring that all our staff receive. The information related to these sales is the property of the company by virtue of those facts. We welcome competition from previous employees and peers within in the industry, its what makes our industry great and drives us all forward, just please create your sales through your own endeavours.

MSI group employs 50 staff at its office in Borough and has enjoyed continued and sustainable growth since inception in 2002. We put this down to the fact that we treat our staff incredibly well with good commission, company incentives , pension , health care and other perks such as gym membership .

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