Restrictive Covenant Advice

markyrp

Hi,
I was hoping someone out there can offer me some advice on restrictive covenants.
I have just started a course with a vocational training provider and I have been asked to sign and return a form or 'contract' which contains a number of restrictive covenants which I find completely unreasonable.
I am self employed and have completed a number of courses with this particular training provider but the training provider is now providing a slightly different training regime.
I can understand to a certain extent the covenants relating to disclosure of information and poaching of clients, even though the wording seems far too encompassing and open to interpretation. My main issue however is the restrictive covenants linked to geographical limitations and the timeframes for which the relevant covenants are extant.
The training provider is asking me to sign a contract which refers to me as an apprentice, even though I am not in their employment. I sometimes provide some cover for their core business but as I say, I am self employed and not employed directly by them. Qualification relies on completion of the course and also completion of the requisite number of training hours or 'apprentice hours' as they are referred to.
The contract states that I cannot work within or open competitive business premises within a fifteen mile radius of their training centre for a period of five years. I currently work at venues within a fifteen mile radius of their premises for which they are already aware and have never expressed an issue. None of this new information was provided to me prior to commencement of the course.
I don't know if this 'contract' is even enforceable but I find it incredibly restrictive and feel it would severely impact my ability to earn a decent living and I am unwilling to sign. Unfortunately they are the only training provider in this particular field in my area. I have already invested a great deal of time and money to get where I currently am and feel very annoyed that the training provider is now trying to control me and restrict any possible competition in the area.
The contract even states that the covenants would be enforceable if I didn't complete the training for any reason. As a result I haven't signed anything as yet.
Any advice would be appreciated.

paddedjohn

Can you find another training provider?

markyrp

Not in this country.

paddedjohn

If you really want this qualification then it looks like you may have to play ball. I'm sure you wouldn't be happy if you trained someone up and they set up in direct competition with you next door, looks like they are trying to cover their backs.

markyrp

They are offering a training package but then expect to control your earning potential. I could understand if I was their employee and they had invested time and money in training me. Even then, not being able to work outwith their organisation within 15 miles for 5 years would be a bit extreme.
This wasn't the situation when I began training several years ago. What you have to remember is that I pay for the training and it isn't cheap. Then to be expected not to work within 15 miles for 5 years unless it was doing some work for them I think is unreasonable to say the least.

sangie595

markyrp wrote: »

They are offering a training package but then expect to control your earning potential. I could understand if I was their employee and they had invested time and money in training me. Even then, not being able to work outwith their organisation within 15 miles for 5 years would be a bit extreme.
This wasn't the situation when I began training several years ago. What you have to remember is that I pay for the training and it isn't cheap. Then to be expected not to work within 15 miles for 5 years unless it was doing some work for them I think is unreasonable to say the least.

I don't think it is unreasonable. It is only 15 miles - not exactly a huge distance. And you are at liberty to go to another training provider. Whether that suits you is for you to decide. But I would say that if they chose to, there is every chance this would be enforceable because (a) you are not forced to undertake the training from them, (b) it is only 15 miles, and (c) it is unreasonable to think that someone would be sanguine about training you to do something when you will then set up in competition with them for the same clients a couple of miles down the road!

I would not assume this won't be enforceable, and so you should act accordingly. A lawyer (for which you will have to pay) would possibly give you a more complete opinion (make sure you get one who actually knows about these things and has experience in the field, not a general solicitor), but even they would be best guessing what a court would do.

markyrp

I have been working within the 15 mile radius for a number of years now which the training provider is fully aware of and has never expressed any issue.
I am now in a position where I am expected to agree to these new terms if I want to continue with this next level of training which is what I have an issue with.

sangie595

markyrp wrote: »

I have been working within the 15 mile radius for a number of years now which the training provider is fully aware of and has never expressed any issue.
I am now in a position where I am expected to agree to these new terms if I want to continue with this next level of training which is what I have an issue with.

What they may have done in the past had no relevance to now. This is what they are doing now. If you think you shouldn't have to sign, discuss that with the training provider. Or sign and hope it isn't enforceable ( bad option because it is limited, it may be enforceable) or that they don't really mean it. Or save up for the lawyer that you will need when they go to court. Or find another training provider.

Andy_L

sangie595 wrote: »

I don't think it is unreasonable. It is only 15 miles - not exactly a huge distance.

Depends where you are. If they're based in Central London thats pretty much everywhere within the M25. So, in terms of potential customers, thats a huge number of people

[IMG]http://maps.google.com/maps/api/staticmap?size=600x500&path=fillcolor:0x00FF00|weight:1|color:0xFFFFFF|enc:gkuzHn}WhB{vCzHevClOutCzUmrCf\qoClb@}kClh@sgChn@sbCzs@_}Bfy@wvBh~@}oB`cAshBlgAu`BpkAixAfoAqoAnrAkfAluAy|@zwA_s@|yA{h@p{Aq^t|AeTj}AsIp}A?j}ArIt|AdTp{Ap^|yAzh@zwA~r@luAx|@nrAjfAfoApoAnkAhxAngAt`B`cArhBh~@|oBdy@vvB|s@~|Bhn@rbClh@rgClb@|kCf\poCzUlrClOttCzHdvChBzvCiB|vC{HbvCmOttC{UnrCg\poCmb@zkCmh@rgCin@rbC}s@~|Bey@xvBi~@|oBacAphBogAt`BokAjxAgoApoAorAhfAmuAx|@{wA~r@}yAzh@q{Ar^u|AdTk}ApIq}A?k}AqIu|AeTq{As^}yA{h@{wA_s@muAy|@orAifAgoAqoAqkAkxAmgAu`BacAqhBi~@}oBgy@yvB{s@_}Bin@sbCmh@sgCmb@{kCg\qoC{UorCmOutC{HcvCiB}vC&sensor=true" border="0"[/IMG]

takman

markyrp wrote: »

I have been working within the 15 mile radius for a number of years now which the training provider is fully aware of and has never expressed any issue.
I am now in a position where I am expected to agree to these new terms if I want to continue with this next level of training which is what I have an issue with.

What really surprises me is that you do all your work within a 15 mile radius of the only training provider of this course in the entire country!.
If the restrictions are going to severely affect your earning potential then it may be justifiable to pay the extra expense to get the training done further afield (even in a different country). It all depends on how much work you will end up loosing due to this restriction.

paddedjohn

takman wrote: »

What really surprises me is that you do all your work within a 15 mile radius of the only training provider of this course in the entire country!.
If the restrictions are going to severely affect your earning potential then it may be justifiable to pay the extra expense to get the training done further afield (even in a different country). It all depends on how much work you will end up loosing due to this restriction.

If hey truly are the only provider of this training in this country the op might benefit greatly by taking their offer and then moving further afield where he would possible be the only person with his skillset, he could clean up.