New work contract. Issues I need answering.

Richie_C

I've just been offered a pay rise by my employer and given a new contract. Upon reading my new contract I've come across this paragraph which concerns me a lot. I was wondering if anyone can explain this to me to make sure I am understanding it properly.

The paragraph says:

Non-Competition

"You will not for a period of six months after the termination of your employment either personally or by an agent, whether on your own account or for or in association with any other person, firm, company or organisation, engage in business with or be in any way interested in any firm, company or organisation within a 20 mile radius of the address specified on page one which engages in or carries on the business of design led solutions".

So the way I'm reading this is if I decided to get a new job with a design studio in a 20 mile radius I'll be breaching my contract.

Is this correct?

notanewuser

It's highly unlikely to be enforceable.

Richie_C

How so?

Can I basically lie about where I'm going to and refuse to tell them who I am working for?

Another_not_new_user

I don't agree. It's there - you can agree or not. They aren't hiding the term. And 20 miles is not an unfair restriction on trade. Whether they would seek to enforce it is another matter. Many employers do not. But if they do, you stand in risk of them winning. So you make a decision and then you take the risk if you breach it. Nobody can tell you it definitely isn't enforceable because the terms are not unreasonably restrictive.

elsien

Richie_C wrote: »

How so?

Can I basically lie about where I'm going to and refuse to tell them who I am working for?

You can. But then if your new employer needs a reference from them you may regret having told porkies.

notanewuser

Another_not_new_user wrote: »

I don't agree. It's there - you can agree or not. They aren't hiding the term. And 20 miles is not an unfair restriction on trade. Whether they would seek to enforce it is another matter. Many employers do not. But if they do, you stand in risk of them winning. So you make a decision and then you take the risk if you breach it. Nobody can tell you it definitely isn't enforceable because the terms are not unreasonably restrictive.

It would be extremely unfair for someone based in a major city!

Another_not_new_user

notanewuser wrote: »

It would be extremely unfair for someone based in a major city!

No it wouldn't, because that isn't how the law works on such matters. It is equally unfair that someone simply apply their insider knowledge of the trade to help a competitor in the same area and encourages the poaching of staff and clients. Twenty miles is definitely not outside the radius of unreasonableness - in fact the radius of this makes it MORE likely to be enforceable. So it is irresponsible to say that it can't be or is highly unlikely to be enforced - because that is a long way from the truth. You pays your money and you takes your choice - it certainly may be enforceable, the limited radius makes it more likely to be enforceable, and the employer may choose to enforce it. Those are the risks one takes.


The OP can refuse the pay rise. Or try to renegotiate the restrictions. or accept the contract. But they should do so in the knowledge that there is a risk to them here.

Richie_C

To me it is unfair. I'm not a senior member, I work as a designer in the company. I don't deal with clients and have no insider knowledge, influence or anything like that.

I have a house near by with my girlfriend and 2 dogs and wouldn't ever have a commute longer than 20 miles. For me this rules out the Derby and Nottingham area. Which is where I would find most jobs if I was choosing to move on. By me moving on it wouldn't effect the business and they would'nt lose any customers because I have left.

Also the term design led solutions is very vague. To me being a 3D designer that would mean I couldn't become a web designer lets say because you could class it as a design led solution.

It seems to be if I sign this contact I would have to work at my current job forever.

Takeaway_Addict

Richie_C wrote: »

To me it is unfair. I'm not a senior member, I work as a designer in the company. I don't deal with clients and have no insider knowledge, influence or anything like that.

I have a house near by with my girlfriend and 2 dogs and wouldn't ever have a commute longer than 20 miles. For me this rules out the Derby and Nottingham area. Which is where I would find most jobs if I was choosing to move on. By me moving on it wouldn't effect the business and they would'nt lose any customers because I have left.

Also the term design led solutions is very vague. To me being a 3D designer that would mean I couldn't become a web designer lets say because you could class it as a design led solution.

It seems to be if I sign this contact I would have to work at my current job forever.

Then don't take the pay rise?

Otherwise look to negotiate the terms involved, ask for a smaller radius, smaller time not allowed to work for competitors etc.

suicidebob

20 miles is completely unreasonable, and this is almost certainly unenforceable.

Richie_C

I'm going to go in tomorrow and try and negotiate a change. If one cant be met I just wont take the pay rise. £2k isn't enough to for me to ruin my career and not be able to work for any company in a 20 mile radius.

Another clause they have added is:

Short-Time Working and Lay Off

The company reserves the right to introduce short time working or a period of temporary lay off without (with the exception of any statutory entitlement) where this is necessary to avoid redundancies, where work can't be performed due to exceptional circumstances, or where there is a shortage of work.



This says to me I can turn up for work one day and be sent home or have my hours cut without any prior notice if there isnt enough work in the studio.

This has never been in my contract before.

To give some perspective we have lot a fair few staff this year and we have had quiet times in the studio but then really busy times where we stay late (and don't get paid over time), so it generally balances out.

Again this scares me as if I sign this I could have my hours cut and be unable to work for another company.