Lost commission compensation after Queensland salesperson departure dispute

Lost commission compensation after Queensland salesperson departure dispute
Lost commission compensation after Queensland salesperson departure dispute

A Queensland real estate agency has been compensated after a former star salesman resigned to join a rival company and caught poaching clients and stealing confidential information.

NB Lawyers director, Jonathan Mamaril, said the matter was settled out of court.

He suggested the matter highlighted the need for estate agencies to have carefully drafted employment contracts in place for staff.

There was also a need for policies directing employees about the specific use and handling of confidential information.

Mr Mamaril said the issue was particularly pertinent to the real estate sector where there was a great deal of movement of staff between companies and confidential client databases were crucial to the business.

“A high performing salesperson resigned from their position and went to a direct competitor of our client the very next day,” he said.

“The former employee took specific client details and confidential information belonging to their former employer with the intent to provide this to his new employer.

“The former employee provided a particular client to their new employer which was at the value of $14,000 in commission. 

"However of greater importance to our client was the potential poaching of further clients with the confidential information the former employee had in their position.”

Mr Mamaril said in this case there was an employment contract in place with a reasonable restraint of trade clause which allowed NB Lawyers to draft a letter to the former employee and their new employer in relation to the breach of employment contract.

“After some negotiation the outcome was our client received a signed undertaking from the former employee that they would not use any further confidential information and the firm was compensated for the lost commission,” he said.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

Tags: 
Real Estate Settlements

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