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Working in Certain Areas.

Hello,

My works contract states that im unable to work in a certtain area after leaving my current job.

Can they stop me from working in the area at another company doing a simular role?

Kind regards
«1

Comments

  • InsideInsurance
    InsideInsurance Posts: 22,460 Forumite
    10,000 Posts Combo Breaker
    You can legally have clauses that prevent you going from your current employer and immediately start working for a competitor or setting up your own company as a competitor.

    At the same time they cannot stop you from reasonably earning a salary.

    The challenge is to legally balance these two and you would need to give a lot more information about what you do, what the market is like etc to determine if things are reasonable or not.

    Stopping the FD of a Lloyds market insurer that specialises in pianists from working for another pianist specialist Lloyds insurer for 3 months probably is considered reasonable as he could work for any other type of insurer or even a pianist specialist outside of the Lloyds market as his skills are totally transferable.

    Stopping a binman working for a refuse company within 500 miles for 36 months would probably be considered unreasonable and so unenforcable
  • I've dealt with contracts that preclude you from working for a competitor but never for a general employer in the area. Is this what you mean or do you mean you'd potentially work for a competitor?
  • SarEl
    SarEl Posts: 5,683 Forumite
    A good restrictive covenant always has a geographical limit on it - in almost all cases it is one of the essential test of enforceability.
  • parmun
    parmun Posts: 70 Forumite
    Hello,

    Yes i work as an Lettings agent and the marked of applicants moves very fast (every 2 weeks)

    So its unliekly ill be dealing with the same applicants/clients.

    There is also a radius stated on the contract but the new position is within this radius.

    Can they really enforce this?
    I also have never recived a contract nor signed it, does this affect it?

    Kind regards
  • InsideInsurance
    InsideInsurance Posts: 22,460 Forumite
    10,000 Posts Combo Breaker
    how do you know what it says if you never received it?
  • How long have you worked there?
    DMP Mutual Support Thread member 244
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  • parmun
    parmun Posts: 70 Forumite
    Ive worked here for 3 years and have been told from my collegues about the area rule ect.
  • So you've been there 3 years and NEVER been given a contract of employment? How can they hold you to the terms of a contract that you've never signed or agreed to? Are you ABSOLUTELY SURE you didn't sign one when you joined? If you didn't good luck to them in actually stopping you! What would they take you to court with?! Office rumours about what you're supposed to do and not do?!
    DMP Mutual Support Thread member 244
    Quit smoking 13/05/2013
    Joined Slimming World 02/12/13. Loss so far = 60lb in 28 weeks :j 18lb to go :o
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    parmun wrote: »
    Ive worked here for 3 years and have been told from my collegues about the area rule ect.
    Just because you have not received a document does not mean that you don't have a contract.

    But requirements which restrict your freedom to work elsewhere have to be knowingly agreed by you beforehand, because they seriously affect your rights. As you have not been told about such a requirement by your employer [colleagues don't count], you have good reason to disregard this condition.

    Additionally, it may be that management would inform you before you leave. Your answer should be along the lines of "This is a new requirement,which I do not accept. I will resign rather than accept it".

    But if management have ever mentioned it to you, then your position is much more sticky.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • parmun wrote: »
    Hello,

    Yes i work as an Lettings agent and the marked of applicants moves very fast (every 2 weeks)

    So its unliekly ill be dealing with the same applicants/clients.

    There is also a radius stated on the contract but the new position is within this radius.

    Can they really enforce this?
    I also have never recived a contract nor signed it, does this affect it?

    Kind regards

    This does make sense, especially with your role where clients can be potentially poached and internal practices shared. Is it possible to go further afield?
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