Generally, the employer’s rights against the former employee would be limited to any contractual obligation which may have been breached. For example, if there is an express obligation on the former employee not to hold themselves out as an employee, the above situation will amount to a breach of the contract and the former employee can be sued accordingly.

However, an employer should carefully consider taking actions against former employees in this context as damages may be low, the employee may not be able to pay damages even if they are awarded and making a case in open court could draw further attention to the issue. Specific legal advice should obtained on this issue.