The declarations and orders handed down by the NSW Supreme Court which prevent two former Employsure managers from working for competitor company ELMO Software, proves the notion of intellectual property is one held in high esteem by Australian society and the justice system.
On Wednesday 27 October 2021, the Court gave effect to its earlier judgement that ELMO Software (ASX:ELO), a direct competitor of Employsure and its BrightHR software, induced former Employsure employees David McMurchy and Arumugam Kumaran into breaching their contracts and solicit others to take up employment at Elmo, and the launch of its own product ‘BreatheHR’ into the Australian market.
Employsure began legal proceedings to protect its intellectual property when the full details of the situation came to light, and is now in the process of pursuing recovery of significant damages and costs against Elmo and the former employees. The court has timetabled the commencement of this process.
Employsure CEO David Price welcomed the orders and said:
“A business is entitled to protect its intellectual property, business interests, and employees from external solicitation. Our decision to pursue Mr McMurchy and Mr Kumaran is justified, and the outcome of this case proves this.
“Former employees who knowingly breach their contract, and competitors who may try and target them, must be held to account. We have no concerns about competition, however that competition must always remain fair and legitimate.
“We would like to thank and congratulate everyone involved in this decision and welcome the NSW Supreme Court’s recognition and endorsement of the need to protect our legitimate business interests.
“Our focus now is to move forward and keep doing what we do best: helping small businesses build safe and fair workplaces so they can grow their business and protect their employees.”
Employsure Ltd v McMurchy; Employsure Ltd v Kumaran [2021] NSWSC 1179
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