Technology and communications are some of the most competitive industries in the world. Business owners in these fields generally go to great lengths to protect themselves and their products in order to keep up and stay aggressive in the marketplace. One of the tools that companies utilize to achieve these goals is a strict employment contract.
For example, Maryland business owners may want to ensure that their employees do not leave their company and work at a competing company, as doing so could put the employee in a position to share sensitive or confidential information. That is why some people are required to sign contracts that set limits on when they may work at a competing business. If an employee violates this contract, serious penalties could be imposed. That is the situation currently playing out after an executive at BlackBerry violated an employment contract to go and work for Apple.
According to the terms of an agreement the executive signed when he was promoted at BlackBerry, he would be allowed to work elsewhere as long as he gave his employer appropriate notice. The contract specified that he must give six months’ notice before leaving.
However, the executive failed to comply with this requirement. He received a job offer from Apple and accepted it, which was permitted, but only gave BlackBerry two months’ notice before leaving. BlackBerry took the executive to court for the violation and won. The court ruled that the contract was valid and that the man had violated the terms by failing to give proper notice.
Employment contracts like the one this man signed at BlackBerry are common in fiercely competitive industries. An enforceable contract can serve as a means of establishing the rules of a relationship between an employer and an employee, and both parties are expected to comply with these rules. Holding employees accountable for violating an employment contract can be an effective way of protecting a business.
Source: Business Insider, “Apple Is In A Big Legal Fight With BlackBerry Over An Employee Who Would Lead Apple’s Core OS,” Kyle Russell