Recent Covid Redundancy and Restrictive Covenant

smooblue

I was made redundant just over a week ago, even after offering to go down to a 3 day week until business improves.

I have a 5 week notice period, however I have a Restrictive Covenant in my contract for a 12 month period which prevents me from from working directly or indirectly with a competitive business. There are other restrictions also.

Is this correct, due to no fault of my own being made redundant by my company because of Covid, that I cannot work in a related field.

Surely these agreements/restrictive practices must be null and void in the current Covid job market

Would appreciate if anyone provide me with any guidance. Many thanks

[Deleted User]

Nothing to do with Covid-19 will have any bearing on restrictive covenants, nor should it.

A 12 month restriction is particularly long, unless you are at a very senior level makes it unreasonable and excessive which makes the entire clause null and void. Further to that case law states that a court will not reinterpret a clause rendered invalid due to excessive length (J A Mont (UK) Ltd vs Mills) to apply it to a shorter period.

The other conditions are probably what are called "non-solicitation causes" which mean that you can no go after your previous employers clients, however again if these have been written too widely (for example covering all clients of the company, regardless of if you dealt with them etc.) and/or are for an excessive duration (a year would be unreasonable) then again that entire clause is rendered invalid.

Both types of clauses can also be deemed unreasonable and rendered null and void if they would render you "unable to trade", eg they stop you undertaking gainful employment in your chosen field. 

In short my suspicion would be that any restrictions are not worth the paper that they are written on. You can show your contract and employee handbook to Citizen's Advice who will help you draft a correctly worded "f**k off" letter should your current (soon to be ex) employer tries to be difficult.

lincroft1710

Why should they be null and void because of a pandemic?

A more pertinent question would be are they reasonable and if so are they enforceable. A reasonable RC would be a ban on poaching clients from your current employer.

Jeremy535897

See an earlier thread:
https://forums.moneysavingexpert.com/discussion/695057/redundancy-and-non-compete-clause

Also https://www.ghplegal.com/ghp-insights/2010/09/qa-can-i-get-restrictive-covenants-removed-from-redundancy-agreement/