New work contract. Issues I need answering.

theoretica

This website reads to me as though they can restrict you if you might use confidential information (who their clients are, how they price) but that "skills and knowledge" cannot be restricted.
http://www.lindermyers.co.uk/are-restrictive-covenants-enforceable/

getmore4less

a few cases here not followed up for which way they go.

http://www.employmentcasesupdate.co.uk/site.aspx?i=li0&s=keyword restrictive_covenants

Richie_C

Thank you for all the replies people, its really helping me.

I spoke to my line manager about it today and said I wasn't comfortable signing it with this covenant or more importantly how vague it was, they came back with it slightly more refined saying " POS retail design led solutions" which is still very vague and wide ranging and would severly limit my career and chances of moving to a new job. They keep mentioning one big competitor they wouldn't want me to go to.

Now if they just mention that company in the covenants then ill sign it but to include all and any POS companies some of which aren't even our competitors is just career suicide for me. I'd rather decline the contract and keep on my current salary and I would be a lot happier with that.

If it was to be forced upon me then I would have to leave the company ASAP.

Basically we have had a few senior members of staff leave over the last 3 months, some of which have tried to poach staff and our MD thinks they are out to get her.

I understand she is trying to protect her company but I feel I'm being penalised for other peoples actions. I'm just a designer who has no inside special knowledge, I don't deal with clients and I'm in no position or have the experience to poach staff, I sit at my computer and design, so for me this covenant is really unfair as a designer in this company. If I was to leave the company it would be because I want to simply move to some where new, try my skills out else where, maybe said company has better hours or a pension scheme etc. (To me that's life, that's business). All of which I deem as fair a just if I want to leave and strongly disagree that I should throw that all away.

PHILANTHROPIST

Just read this post. I agree with the OP's approach. Shame about all the member squabbling which is sadly par for the course. I'm inclined to back ANNUs view, but may help to temper the patronising tone.

Best of luck to OP anyhow.

Takeaway_Addict

Richie_C wrote: »

Thank you for all the replies people, its really helping me.

I spoke to my line manager about it today and said I wasn't comfortable signing it with this covenant or more importantly how vague it was, they came back with it slightly more refined saying " POS retail design led solutions" which is still very vague and wide ranging and would severly limit my career and chances of moving to a new job. They keep mentioning one big competitor they wouldn't want me to go to.

Now if they just mention that company in the covenants then ill sign it but to include all and any POS companies some of which aren't even our competitors is just career suicide for me. I'd rather decline the contract and keep on my current salary and I would be a lot happier with that.

If it was to be forced upon me then I would have to leave the company ASAP.

Basically we have had a few senior members of staff leave over the last 3 months, some of which have tried to poach staff and our MD thinks they are out to get her.

I understand she is trying to protect her company but I feel I'm being penalised for other peoples actions. I'm just a designer who has no inside special knowledge, I don't deal with clients and I'm in no position or have the experience to poach staff, I sit at my computer and design, so for me this covenant is really unfair as a designer in this company. If I was to leave the company it would be because I want to simply move to some where new, try my skills out else where, maybe said company has better hours or a pension scheme etc. (To me that's life, that's business). All of which I deem as fair a just if I want to leave and strongly disagree that I should throw that all away.

Being a designer is quite an important issue though, you know how the POS works, what's the good points, what the bad points are. You have a lot of information that competitors could take advantage of...hence the restrictions.

That as an aside, have you asked for them to change it to specify this competitor and maybe stick a nominal mileage in there, ie 8 miles?

getmore4less

I will pick up this point.

Richie_C wrote: »

Basically we have had a few senior members of staff leave over the last 3 months, some of which have tried to poach staff and our MD thinks they are out to get her.

I understand she is trying to protect her company but I feel I'm being penalised for other peoples actions. I'm just a designer who has no inside special knowledge, I don't deal with clients and I'm in no position or have the experience to poach staff.

This is the level where a lot of poaching(often indirect) happens, many jobs are found through networking and never go on job sites.

Good people in a sector migrate towards the better employers through contacts with previous work mates and personal references.

Networking is a very important factor in career progression so start to cultivate it.

It is good you are investigating the motivation behind the changes in contract, don't just focus on the restrictive nature, look at pointing out the things that make another employer more attractive and that one way to keep the best staff is be the best employer in the sector.

Another way for companies to impose restrictions is longer notice periods.

cazziebo

I've worked in and with several companies where restrictive covenants are used and they are enforceable. Whether they are enforced or not depends very much on the situation. One company I worked in pursued and won many such cases. Factors behind the decision to pursue would be mainly in how much of a threat the new company was, or how much the leaving employee had p**d off the boss by going!

Another Not New User sets out very clearly the legal position regarding these clauses. What you have to do, OP, is make a judgement on the risks and rewards involved.

Such covenants are widespread in the design sector so employers will be used to dealing with them. If a company wants to attract the right talent, they will work around them. Possible workarounds are to hire recruits in an non design role for the covenant period, offer a signing bonus as an added incentive or just negotiate with the ex employer. It would be a short sighted company who turned down a talented designer because of a six month covenant.

I don't think it's a good career move not to take the pay rise - as another poster says - contract changes could still be implemented - and are you happy to stay on your current salary forever?

Undervalued

cazziebo wrote: »

Another Not New User sets out very clearly the legal position regarding these clauses. What you have to do, OP, is make a judgement on the risks and rewards involved.

Quite.

Based on what the OP has said here the proposed restrictive covenant would very likely be enforceable.

Whether the firm would actually go to the trouble and expense is more difficult to judge. Obviously it would depend on the actual circumstances at the time and, to some extent, on the level of personal goodwill or animosity.

ohreally

So where are you sitting with this op?

Takeaway_Addict

ohreally wrote: »

So where are you sitting with this op?

Within a 20 mile exclusion zone...