Restrictive Covenants?

idea

Hi,

Wonder if anyone can help me? I am miserable at my work and fed up after bringing work into the organisation and having no reward, I have decided to leave and set up on my own.

Just one problem though. I have a restrictive covenant in my contract which prevents me with working with any clients and competing with my current company. The client in question directly contacted me about the work in the first instance and has categorically stated that the work would not be with my current company if it was not for me doing it. So, the question is, if I leave does the restrictive covenant apply in this case?

I hope that makes sense, if this is on the wrong board, mods please move.

Any suggestions of where to go for some advice would be gratefully received.

steve1980

Check the terms of your contract. I would hazard a guess in that there would be a restriction in you dealing with any existing client of your employers.

The only thing you can do is to take the risk.

Savvy_Sue

There are several threads about this over on the Employment board, do a search there for 'restrictive covenant'. What you'll find is that 'it depends' on whether or not it's a 'reasonable' restriction or not, and that depends on how it's worded. So if you have the wording handy, probably worth posting it up and I could move you over to the other board.

idea

Sue,

Thank you for your idea, I am so totally and utterly scared of my company that I can't put the terms of it here. That sounds rubbish doesn't it? But that's the way it is.

Sorry.

Can you suggest someone I could speak to to get a 'legal' view?

Thank you for your help.

Idea x

Savvy_Sue

Not even in general terms? ie how long does the restriction apply? And would the client be willing / able to wait it out? how wide a geographical area does it cover - five miles, 50 miles, 100 miles? has the company taken action against previous employees who've moved on?

If you're in a union, start there. If you have legal insurance on your household policy, that's the next best place. then there's CAB, or you may have a law centre near you.

Also look at those threads (I hope) you've searched for, they will give you some indications of what is reasonable and what is not.

property.advert

Simply because your company has restrictive covenants in place would indicate either that they had good lawyers draw up their original contracts or they have experienced this sort of thing before, or both !

It happens a lot in the legal world and one way I know it has been resolved was for the firm to allow the employee to leave with one or a limited number of clients and make specific assurances not to poach others. The rationale being that it was better to draw a line under the matter, limit damage to the company and avoid any recriminations with the potential ex employee seeking to attract many more clients. In essence, the company loses very little as the client would probably move anyway but it does get to manage the process.

Get your ducks in order and hopefully, once you've explored the legals, a firm contract with with this client. You then know you won't be left in the lurch. You will also need a back up plan should you not be able to agree an exit strategy with your current employers. This should include an assessment of the implications of breaking your restrictive covenant.

Jarndyce

property.advert wrote: »

Simply because your company has restrictive covenants in place would indicate either that they had good lawyers draw up their original contracts or they have experienced this sort of thing before, or both !

That is far from true in many cases.

Many employers put unrealistic RCs in employment contracts because they think they can. They are wrong. RCs are de facto void, and are only enforceable if they are reasonable and proportionate.

However, if the OP can't tell us anything more about his particular RC, I can't help any further. If you decide to change your mind, please post in the Employment Board.

patman99

The OP needs to clarify what the R/C's are. They could be as simple as "No employee or former employee may set-up in the same sector within 5 miles of the company for a period of not less than 1 year". Or, they could be more involving.