Legal Issues with Contacting Old Customers

Tripledrop

YouAsked wrote: »

How has his new employer taken the letter? Possibly the employer might "fight the battle" on his behalf?

Apparently all the new boss has said is that he's not prepared to sign anything, so my friend will need to take legal advice himself.

Clearly he's worried that he will be sacked if he can't call/visit anyone

Tripledrop

agrinnall wrote: »

They might, but I would think that gm4l's scenario is much more likely.

OP, if you want to work in the same industry within the timescale of the restriction you might have to look for a job that is geographically remote from the location of your old employer so that they can't argue that you are impacting on their business.

Both companies cover the whole of the UK... It's cloud-based software

sangie595

Tripledrop wrote: »

Yeah I've advised him to do this, but he only has until Monday to respond, and he's not got a lot of money for legal advice etc.

I think it will be money he has to spend. Quickly. As mentioned, your understanding of restrictive covenants is easy too simple. The terms do sound extensive - but you need to understand that even a lawyer can't tell you what a court will decide, they can only guess. If the former employer is involving a solicitor, this could be serious. And the new employers best option to stay out of it is to sack him. Which they can do!

Tripledrop

Hmmmm, doesn't sound too good for him

steampowered

I don't think it is a good idea to start having an argument about whether or not the clause is enforceable, particularly if your friend does not have much money for legal advice.

I would have thought a better approach would be for your friend to simply say he has no intention of signing the documents as the employer has the existing contract? The employer has the existing contract so I don't see why they want an additional piece of paper.

Realistically, the employer would need to have evidence that the employee intends to breach or has breached a contractual term before it is able to obtain an injunction (which is presumably what is being threatened here).

If the letter has set a deadline of Monday, I would suggest sending a holding response stating that he has received the letter, is seeking legal advice and will revert with a full response once he has taken legal advice.

ohreally

A restriction should be reasonably necessary for the protection of the employers business it shouldn't be open ended and is subject to two limitations, the restraint must be designed to protect the legitimate interests of the employer and it must be reasonable in terms of the prohibited activities and in terms of time and area covered.

There is a lot of case law, you need to get reading!

getmore4less

steampowered wrote: »

I don't think it is a good idea to start having an argument about whether or not the clause is enforceable, particularly if your friend does not have much money for legal advice.

I would have thought a better approach would be for your friend to simply say he has no intention of signing the documents as the employer has the existing contract? The employer has the existing contract so I don't see why they want an additional piece of paper.

Realistically, the employer would need to have evidence that the employee intends to breach or has breached a contractual term before it is able to obtain an injunction (which is presumably what is being threatened here).

If the letter has set a deadline of Monday, I would suggest sending a holding response stating that he has received the letter, is seeking legal advice and will revert with a full response once he has taken legal advice.

I don't think that helps, much better to be compliant and if all that letter does is reiterate existing contractual obligations.

If there is a "no work for competitor clause" then that's the one you want to get them to back off from and not enforce as that is a factual yes/no if enforceable.

any other clauses would require proof that there has been a breach as well as being enforceable.

Back to my previous point the new employer is the one with problem if they(old employer) take action and they have a very easy and cheap solution.
.................................................
OP.
If it is fairly common for leaver to go to competitors(like yourself) then why have you/others not been targeted as well, maybe there is something that has triggered this like a loss of a contract or a customer has blabbed.

paddyrg

the letter has set a deadline of Monday, I would suggest sending a holding response stating that he has received the letter, is seeking legal advice and will revert with a full response once he has taken legal advice.

This would be the right approach. Assuming the threat was last week they're counting on the weekend and short timescales to pressure artificially. Some lawyers aren't overpaid thuggish henchmen, but none of them offer independent advice, only represent their clients, and it's certainly not unusual for them to use bullying language and tactics and implied threats. Sadly, this is why your mate needs to get his own.

Nicki

You and your colleague should check your domestic insurance contracts as they often cover legal advice for employment matters and get some legal advice asap. Even if you just have a solicitor responding to the original letter, this may be enough to let the former employer know that you can't be bamboozled and that their restrictive covenant may be challenged which may mean some form of compromise can be reached. Good luck.

MEM62

Unless he signed an agreement separate to his contract of employment to this effect (and the fact that his old employer is writing to him suggests that he hasn't) they cannot enforce any terms and conditions once his employment has ended. He has absolutely no obligation to enter into the agreement that his ex-employer is requesting and, of course, if he does he is then restricting his future activities. I would write back, tell them that you have no intention to enter into this agreement and that, if they think they have a case for legal action, bring it on!