Ex employer threatening to take me to court for breach of data and Fraud

[Guest]

Hello I am looking for some advice please, I used to work for a UK based company and left two months ago. They were fine about me moving on although tried to get me to stay, I was their main biller. They have since sent me a letter stating that I have breached four covenants in my contract and they are looking to start an investigation based on an allegation.

I have found out through other means that someone had told the boss that I was discussing setting up my own business and making connections. They are basing this investigation on that information only but the solicitor letter says that there are allegations of me using data (never happened) something about GDPR and asking me to sign an undertaking and declaration...

They have given me a strict deadline to return this and have threatened court and legal action. I don’t know what to do as I can’t afford legal help at this stage if they are just trying to scare me for information and they have clearly got the wrong end of the stick from my conversation with an ex colleague.

I have never taken any information relating to their clients or used any data or shared any of their information I think they think I have used their information to network clients since leaving or even while there but they are mistaken. I asked them for a full disclosure of the allegations against me but they just sent the same breach of covenants and said I need to sign the undertaking and declaration letter before police action and court.

hoping someone can help, I’m not sure what do do from here. I have an appointment with citizens advice. They also held back my last pay packet, I chased them and threatened them with action and they paid me roughly half of what I’m owed.

thanks in advance - they are a bit of a dodgy outfit but I am concerned this may go further even though they can’t possibly have any evidence as I never did what they accuse me of.

[ULA]

You state you worked for a UK based company, are you yourself not UK based?

Were there restricitve covenants in your contract of employment?
If so do you believe you have breached them in the two months since you have left or intend to breach them?
How long were the restrictive covenants in place after termination?
What is your employment situation now - are you self employed, gone to work for a competitor, supplier, customer?

Just need some more information to be able to help you.

[VelmaPops]

Hello, thanks for coming back.

Yes I am UK based, my previous employment was working so ty clients in the UK. I am not working for a competitor who service international markets.

I don’t believe I breached the covenants, they don’t state that I can’t work for a competitor only not target their clients for a period of 6 months. I have never contacted any client on their list which they sent.

I did consider leaving the firm a while ago and looked into setting up in my own but I didn’t have the confidence to make the move. I spoke to someone about this a few weeks before I accepted a job offer from another firm.


The declaration they want me to sign seems to refer to any electronic data, hard copy data to not be deleted and returned (I don’t have any, all laptop and phone used was returned weeks ago) and there seems to be an added covenant in this declaration they wish me to sign.

They have also threatened police action, it is a very heavy threatening letter but when I asked for disclosure of the allegations they simply just re-hashed the alleged breaches and stated they can add to this at any time if they wish during the “investigation”.

hope this helps. Thank you for trying to help me, I don’t know what to do next.

[ULA]

Thank you very much for the extra information which was really helpful.

So from what you are saying there is nothing in any restrictive covenant you believe you have breached and they have not specifically set out any allegations, just asked you to sign a declaration, which you potentially cannot comply with as you do not have the information they are requesting you to return.

Is the extra covenant they are asking you to sign in the declaration, effectively them trying to get you to agree something that would have typically been in a contractual restrictive covenant clause?

I appreaciate their behaviour is very threatening however my view is that you need to go back with a really robust response, point out the following:

1. Details the restrictive covenants from your contract and against each one confirm that you have not breached them.
2. As far as you are concerned they have not provided sufficient detail and evidence of the allegations for you to be able to refute the allegations.
3. You have not set up your own business and you in full time employment.
4. Confirm that you cannot agree to their request to sign a declaration you cannot comply with since you do not have any electronic data, hard copy data belonging to the company in your possession and that you have already returned all company property several weeks ago.


If you want to draft something and post it here then happy to review for you.

[VelmaPops]

Thank you so much. I used the above to respond as you detailed exactly, listing the covenants etc and sent the email.

They very quickly replied saying...


You have misunderstood the declaration, if you have no information then you state that you have none in each category before you sign and return the declaration and undertaking. Please therefore complete and return a signed copy (please pay attention to the wording of the statement of truth on the document as it would be contempt of court to sign it if untrue, which is a criminal offence).
You have not responded at all in respect of the allegations, including the allegation of fraud ( in respect of misappropriating monies). My client has decided therefore to refer this matter to the police.

I have again asked for some more information on the allegations as they have not provided anything other than the statement. Also asked what other allegations as they mention plural, I asked for details on the allegation of fraud. I said I cannot sign anything that I cannot comply with as I have no data belonging to my precious employer, electronic or hard copy.

I am worried that are threatening police action for what, I am confused and annoyed at their tone. Not sure if I should wait for them to come back again as I cannot be any clearer on my response.

Thank you so much for your help on this. I have no idea how to deal with things like this as never been in any situation like this with an ex employer or anyone else.

[ULA]

Do you have idea of what they mean by misappropriating monies and allegations of fraud as I though from your initial post it was just about restrictive covenants? Is this the first mention of this?

If you have asked again for further details to substantiate their allegations then you need to wait for that to be responded to.

In the meantime if you want to anonymise the document they are asking your to sign and post it here I can take a view.