Q. I work in the financial service industry, and in my industry when a trader changes the company that he works for, he calls his clients and tries to switch them over to the new company . Most companies incorporate on their employment agreement a clause that addresses this issue, but in reality this clause is very hard to enforce, because it is an open and very competitive market; every client gets calls from many different companies that try to get their business, and nobody can prevent a person from using the relationships that he established through the years. The main reason why companies hire traders from other companies is because of these relationships. Some of these companies are fully or partially owned by Jews.

The company that I work for, has a referral program that pays to the person that introduces the new client a % of the profits generated by this new client, and the trader gets his usual % as well.

I know somebody that used to work for one of the competitors of the company I work for. I told him about this referral program, and he said he could refer me to some of his old contacts. Also, he spoke to one of his friends that works at the same company he used to work for, and his friend said that he could give him the contact information of some good clients of the company and they can split the referral fees.

I want to know if I’m allowed to use these referrals, my friend’s contacts or the leads provided by his friends, or both.

A. Chasam Sofer (C.M. 79), prohibits going into someone else’s business and convincing them to come to his store. There are many Poiskim who prohibit attracting customers that are already being served by a company, however, other Poskim permit. Emek Hamishpot (18, 195) rules, that in practice it depends on the local customs and legal ways of doing business.

Horav Shlomo Miller’s Shlit”a opinion is that if a contract was signed, and it carries a restrictive clause, it should be kept accordingly. If no such condition exist, you have to follow the normal accepted practices of doing business. As far as an agent who is still engaged by his employer, it would be prohibited to give away contacts and names of customers to a competitor.

Rabbi Abraham Bartfeld