Restrictive covenant

thegurk

I have recently resigned my position as a care home manager. Within my contract there was a restrictive covenant which states that i am not to work within a 5 mile radius for 6 monthsd. I am a registered nurse and have applied for a lower position in another care home nearby....less than the 5 miles. What could happen if i breach this covenant. I will be working as a nurse not a manager. I doubt there will be any financial loss to my previous company as a result of me leaving.Please advise. Thanks

jazzyman01

Why would you have a restrictive covenant as a care home manager?

They could potentially sue you. However, it is expensive and most do not. Do you know of anyone else who has left with the same covenant and works within the 5 miles?

MrC_Beds

It does seem a bit odd, it's hardly like you are going to take any of his punters with you, or tout for trade! If the employer did try and enforce it, he would need to show some sort of proportionality and reasonableness for imposing such a covenant i.e. how you working at another home would affect his business.

thegurk

Yep it seems madness that such a clause was in my contract but there you go. I to find it most unlikely that they would pursue this further, i mean im going to work as a nurse and certainly wont be poaching staff or clients. So if he tried to enforce it i dont think it would be worth his while.

Thanks for the advice, i'm going to accept the new job and move on..:beer:

Debt_Free_Chick

The general consensus amongst lawyers on this type of clause is that it can not be enforced and any Court action by the previous employer will not succeed - as you are entitled to earn a living. It's just a bullying tactic and you should ignore it.

cazziebo

Not strictly true - restrictive covenants have been enforced in several cases. it comes down to a balance between the ex employees right to work and the needs of the company to protect their business.

It is true that it is expensive and time consuming to enforce, and the existence of a restrictive covenant can be enough to deter another employer from appointing someone with one.

Personal opinion - highly unlikely it will be enforced. In the care industry it is sometimes used to prevent competitors encouraging a "mass walk out" which would seriously compromise the ability of the business to function. You have already resigned and your new role doesn't appear to be much of a threat.

Good luck with the applications!

thegurk

incidently i have only been with the company for 11 months so dont know if that makes any difference.