What does this mean? (Employment contract)

Whoknows · 12 December 2017 at 4:43PM

I've been offered an interview with a competitor so checked my current contract and it states:

"The employee covenants with the Company that he or she will not for a period of six months after the termination of employment under this contract without the prior written consent of the Board in connection with the carrying on of any business, similar to or in competition with the business of plumbing services on his or her own behalf or on behalf of any person, firm or company directly or indirectly:

(a) seek to procure orders from or do business with any person firm or company who has at any time during the six months immediately preceding the termination of the employee's employment with the Company done business with the Company, and with whom or with which the employee was personally engaged or for which business the employee was personally responsible

(b) endeavour to entice away from the Company any person who has at any time during the six months immediately preceding such termination been employed or engaged by the Company

provided that nothing in this clause shall prohibit the seeking or procuring of orders or the doing of business not relating or similar to the business described above."

Does this mean I am not allowed for a competitor for 6 months at all, or does it only mean I'm not allowed to poach business or staff for six months?

English is not my first language so am really not getting what it says!

[Deleted User] · 12 December 2017 at 4:49PM

You can't a) steal business or b) steal staff.

But nothing to stop you working for a competitor.

Whoknows · 12 December 2017 at 4:50PM

That's a relief, thank you!

HappyHarry · 12 December 2017 at 4:51PM

a) You can't do business for any customer for whom you (personally) have provided a service for in the last 6 months.
b) You can't poach existing staff.

Your existing company aren't attempting to (and wouldn't be allowed to) stop you work as a plumber.

Edit: Crossed post with zx81 above.

Whoknows · 12 December 2017 at 5:03PM

I'm not a plumber ;-)

But thank you! I'm very relieved.

HappyHarry · 12 December 2017 at 5:07PM

My apologies - I surmised from the content that you were.

Whoknows · 22 January 2018 at 5:25PM

I've now handed my notice in. My current employer is adamant that this means I'm not allowed to work for a competitor for six months at all.

They are saying they are "within their contractural right" to delay the start of my new job by six months and are pointing to the text quoted above.

Now what do I do? Did we all misinterpret the meaning?

comeandgo · 22 January 2018 at 5:42PM

This is quite a common restrictive covenant and as long as they are not too severe can be upheld. If it was to say you could never work for a competitor ever then that would be too restrictive and could not be enforced.

Whoknows · 22 January 2018 at 5:48PM

Thanks comeandgo. So is that what it's saying? That I'm not allowed to work for anyone else for six months?

It's written in a roundabout way but I thought it said that I just wasn't allowed to poach customers or staff?

Kayalana99 · 22 January 2018 at 6:11PM

Have you got a HR you can speak to? For me this clause seems more about you personally 'doing business' with another company.

Being employed for someone else is not 'doing business with' is how I would interpt it, being self-employed and stealing customers would be 'doing business'

It's quite normal for a clause to be added that stops you starting your own business but not from stopping you going to work with competitors.

Also citzen's advice it seems will advise you on your contract and meaning;

https://www.citizensadvice.org.uk/work/leaving-a-job/resigning/if-your-employer-says-you-cant-work-for-a-competitor/

The more I read it, the more I'm sure it means you just can't do business with another company, it says nothing about working for them.

The term 'do business' means to sell goods or services either person to person or company to company etc.

https://www.collinsdictionary.com/dictionary/english/do-business

TELLIT01 · 22 January 2018 at 6:15PM

My interpretation of it was that the OP couldn't work in the same line of business for 6 months from the date their current employment ends. It does also prevent poaching of staff or customers for the same period.

What does this mean? (Employment contract)

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