> Sounds like he's getting paid to work on the same thing by a slightly different stakeholder.
This honestly sounds like the sort of thing I'd sit down with the employee, their new employer, and various "Compliance Team" members, and firm up a bit.
Sounds good for everyone.
We get our bugs fixed, $vendor gets to say "Well we have this thing that was developed in-house for BoshNet, that might solve your problem too, it's going to cost you <some comical amount>", and everyone's happy.
No company with a legal rep is going to be happy with that situation - ever.
Who even owns the code the person is working on? Who is responsible when it goes wrong?