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In: Operations Management

Jill Smith goes to work for Jones under an informal arrangement by which there is no...

Jill Smith goes to work for Jones under an informal arrangement by which there is no contract stating dates for beginning or ending the relationship, Brown Co. induces Smith to quit her job with Jones and come to work for Brown Co. What if any torts are involved? What are the elements of the tort? What is the probable outcome ?.

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Solution -

Jill Smith is under an informal agreement to work for Jones. When Brown Co. induces Smith to quit her job with Jones and come to work with them then restrictive clauses of employment such as the Non-Compete clause can be invoked. The specifics for this torts are as follows -

  • It should be defined and allowed by state laws
  • It should limit the employee for a reasonable time
  • The employer can be harmed by non-compliance by the employee
  • The behavior inducing an employee from a competing employer should be proven

In the above case, it is an informal agreement and hence mostly such cases do not have a written contract. Hence a non-compete clause is difficult to enforce as it would not be a defined clause and even if it is defined, it is an informal arrangement and hence Smith is in his right to leave Jones and move off with Brown Co. If at all there is any non-poaching agreement then Jones can move legally against Brown Co. but in case of an unwritten agreement between Jones and Smith this clause will also not hold good in court.


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