Violation of non-competition clause 1

Violation of non-competition clause 1

BN conducted an investigation into a suspected violation of a non-competition clause. Our task was to establish the truth behind the rumors going around about a mechanic committing fraud.

Our client was aware that this mechanic often did repair work during ‘leisure time’. For this he ’used’ (misused) his employer’s good company name, his maintenance van, his specialist tools, and his materials, and once he started getting busier, even used our clients time. Our client even knew that the mechanic concerned ordered parts via the company’s office that did not match his work orders.

Time to take adequate action!

All relevant findings were recorded in a file, together with supporting images. After a week of intensive surveillance it was time to confront the mechanic with the evidence.

Our investigation clearly established that the mechanic concerned had abandoned his feelings of loyalty towards his employer. During the investigation he financially damaged his employer every day, resulting in structural loss for our client. It was even more saddening for our client to hear that the mechanic had performed maintenance activities at former clients of his employer/ our client. They had succumbed to the temptation of (too) low hourly rates.

The file we prepared was immediately entrusted to the client’s company lawyer. He arranged for the mechanic’s entirely new career … his own maintenance service, his own tools, his own transport costs and his own overhead!

TIPS:

• Create a code of conduct with unambiguous tolerance limits
• Verify the use of repair parts in relation to repair orders
• Be watchful of excessive use of (specific) parts
• Do not authorize spare parts ordering by mechanics (central purchasing)
• Rotate mechanics at regular customers ( to prevent creation of own networks/price deals)