Employment law - is non-compete valid if made redundant?

eits1000

I'd be so grateful for any help on this. An opportunity has arisen for me to get back into the business I once was part of within another company. 

Thanks in advance for any help! 

Andy_L

Probably,  but will depend on the wording of the contract and the details of the redundancy agreement.

TELLIT01

It might be difficult for the old employer to enforce the 'non-compete' element as you have been made redundant.  They could potentially take action on other elements of the contract if you poach their clients.

sharpe106

I doubt the non-compete part can be enforceable as they made you redundant. As it would been as unreasonably stopping you getting another job. The poaching client part probably can be though. 

Thrugelmir

Discuss the matter with your new employers. 

steampowered

A 6 month non-compete would only be legally enforceable if you were a very senior employee (i.e. CEO level) who could fundamentally damage the business by competing with it.

For the vast majority of people 6 month non-completes are simply not legally enforceable and can be safely ignored.

The fact that you have been made redundant means it is even more unlikely the employer would try to enforce the clause just because you work for a competitor. However, if you start poaching accounts, your former employer may be more inclined to pick up a fuss. It would be safest to avoid poaching accounts for a few months if that's feasible.

Dox

There are some very wrong answers here! OP, have a look at a much more informed version of events such as this one: https://www.warnergoodman.co.uk/site/blog/news/restrictive-covenants-dismissal-redundancy

sharpe106

Dox said:

There are some very wrong answers here! OP, have a look at a much more informed version of events such as this one: https://www.warnergoodman.co.uk/site/blog/news/restrictive-covenants-dismissal-redundancy

The answers have been pretty similar to what that article is saying. 

nicechap

eits1000 said:

I'd be so grateful for any help on this. An opportunity has arisen for me to get back into the business I once was part of within another company. I could even poach an account from my old employer and bring it to the new. Is this legal, being that I've been made redundant 2 months ago? My contract has a non compete for 6 months.

Thanks in advance for any help! 

Its more legal and moral than you poaching a client, especially after you've been enjoying 2 months gardening leave at your old employers expense.  Did you get your redundancy payment as well?

https://forums.moneysavingexpert.com/discussion/6124776/redundancy-pay-if-company-goes-bust

https://forums.moneysavingexpert.com/discussion/6123545/is-untaken-holiday-payable-after-being-made-redundant

steampowered

I'm not sure I agree that poaching a client is "immoral".

Competition between businesses is the basis of capitalism. It's very normal for clients to follow account managers when they move from one business to another.

dd95

sharpe106 said:

Dox said:

There are some very wrong answers here! OP, have a look at a much more informed version of events such as this one: https://www.warnergoodman.co.uk/site/blog/news/restrictive-covenants-dismissal-redundancy

The answers have been pretty similar to what that article is saying. 

there are some wrong answers here. The restrictive covenant is enforceable as long as it is reasonable (which 6 months is) and protects a legitimate business interest. Whether or not you are made redundant is irrelevant. It is non-enforceable it isn't any of the above and/or if the employer breaches the contract (e.g. by not paying notice pay). 

Also, the requirement of it only being enforceable if you are a CIO is nonsense.