08/07/2026
Could former employees use your own business knowledge against you?
A recent High Court matter shows how quickly unfair competition can become a serious threat. In this case, two senior managers resigned and started a competing business just 11 days later. The court found that confidential information, client relationships, business methods, equipment knowledge, and software had been used as a shortcut into the market.
This is known as unlawful springboarding, where someone does not start from scratch but uses the benefit of another business’s hard work to get ahead. The court ordered the former employees and their new company to stop unlawfully competing for 18 months and to return or delete confidential information.
The key lesson: protect confidential information before there is a problem. Strong employment contracts, confidentiality clauses, access controls, and proper exit procedures can make all the difference.
Speak to Conradie Inc for guidance on employment contracts, confidentiality, and protecting your business interests.
Read the full article here:
Your top employee resigns and immediately opens up a new business in direct opposition to you. Using your software, your client relationships and your business methods to springboard their new start-up and poach your clients. We discuss, in the context of a recent High Court case, how our law can he...