Restricted covenants

lilollied

Hello - working for my employer since Feb and still in probation period. They unfortunately are unable to keep me on therefore I need to find another income source. I’d like to start my own business in the same field. I have been in this field for 23 years. My employment contract has a restricted covenant prohibiting me to deliver same services. However this is my field and with the limited employment options available I have to go out alone. The current employer has objected to this even though I have formally agreed and even proactively suggested that I will not use their IP, staff or go anywhere near their current clients.
Can they still enforce the restricted covenant? 

They are a large company and I am a 1 man band therefore I pose very minimal threat to them.

id love some advice - 
my understanding is
- they can not deny me the opportunity to earn a living.
-I pose no threat to their business at this time as I am too small and so do not have same level of reputation or resources.
-the restricted covenant is far too vague as it simply states ‘services’ rather than detailing what services 


love some advice please.

TELLIT01

These restrictive covenants can be difficult to impose, and even more so if they have ended your employment rather than you resigning.  Given what you have voluntarily offered, I would think it highly unlikely that they would take if further with any likelihood of success.

elsien

So just to be clear, you will no longer be working for the employer? Is there a timescale set on any limitations after you finish working for them?
You  may be better checking out the exact working with a solicitor who specialises in the field. Although if it is a blanket (and I paraphrase slightly) "no-one who has worked for us can work in this field again" then it would be laughed out of court should it ever come to it. 

lilollied

Thanks - I have resigned and made them
aware of my intentions they are now threatening that if I do not resign they will induce disciplinary proceedings for breach of contract. 

Saying I will be a direct competitor 

oh_really

lilollied said:
I have resigned and made them

aware of my intentions they are now threatening that if I do not resign they will induce disciplinary proceedings for breach of contract. 

Care to clarify, have you resigned and if so what is meant by this?

Dox

lilollied said:

Hello - working for my employer since Feb and still in probation period. They unfortunately are unable to keep me on therefore I need to find another income source. I’d like to start my own business in the same field. I have been in this field for 23 years. My employment contract has a restricted covenant prohibiting me to deliver same services. However this is my field and with the limited employment options available I have to go out alone. The current employer has objected to this even though I have formally agreed and even proactively suggested that I will not use their IP, staff or go anywhere near their current clients.
Can they still enforce the restricted covenant? 

They are a large company and I am a 1 man band therefore I pose very minimal threat to them.

id love some advice - 
my understanding is
- they can not deny me the opportunity to earn a living.
-I pose no threat to their business at this time as I am too small and so do not have same level of reputation or resources.
-the restricted covenant is far too vague as it simply states ‘services’ rather than detailing what services 


love some advice please.

Not a question of 'love some advice' as 'need some advice' - and much will depend on the precise wording of your contract. See a solicitor, clutching contract (metaphorically) in hand. If the clause has geographical and/or time limits, it is much more likely to be enforceable than a worldwide ban for ever.

sharpe106

lilollied said:

Thanks - I have resigned and made them
aware of my intentions they are now threatening that if I do not resign they will induce disciplinary proceedings for breach of contract. 

Saying I will be a direct competitor 

Why did you resign if they were unable to keep you ? Enforcing a restricted convenant is far easier if they want to go down that round for them if you leave rather then them getting rid of you. Usually as well it is only for a set period of time. 

MEM62

If the restricted covenant is included in your statement of main terms (contract) the it is not worth the paper it is written on once you have resigned as that contract is terminated.  However, if it is a separate document it may still carry weight.  However, as has already been mentioned, these terms can be very difficult to enforce and, in your circumstances, I would not be worrying about it too much.     

Marcon

MEM62 said:

If the restricted covenant is included in your statement of main terms (contract) the it is not worth the paper it is written on once you have resigned as that contract is terminated.  However, if it is a separate document it may still carry weight.  However, as has already been mentioned, these terms can be very difficult to enforce and, in your circumstances, I would not be worrying about it too much.     

Some terms can and do survive the termination of a contract - and this is one of them. It's why it is called a restrictive covenant. How else would any employer enforce a restrictive covenant (and some do, with great success). Only if the employer breaches the contract would it cease to apply. 

Brynsam

MEM62 said:

If the restricted covenant is included in your statement of main terms (contract) the it is not worth the paper it is written on once you have resigned as that contract is terminated.  

Nonsense. If an employee resigns, they are still bound by any restrictive covenants they entered into (unless they are found to be excessively restrictive) at the time they signed their contract. If the employer terminated the contract and did so in a way which breached the terms of that contract, then the covenant would lapse.

steampowered

The law says that restrictive covenants are only enforceable if they are (1) necessary to protect the employer, and (2) go no further than is necessary - in terms of how long they last, and their scope.

A restrictive covenant which simply says you can't provide "services" won't be enforceable. 

In practical terms, unless you are poaching the employer's staff or clients, they shouldn't have a reason to spend the legal cost and time going after you anyway.