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Resteicted covenance

How enforceable is a restricitve covenancr about working for a competitor . I have read it is highly unlikely it will be enforceable as i cant be stopped from earning a living 

Comments

  • sharpe106
    sharpe106 Posts: 3,558 Forumite
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    It depends what you do and how you left your last job. They are not easily enforceable but they are enforceable. A company would only bother if the person leaving could cause them harm or had done when leaving.  A lot of company have it in contracts when in reality if the person left and went to a competitor it would not effect them really so they would not bother enforcing it. But if for example you are a accounts manager and were going to take a load of accounts with you they probably would.


  • TBagpuss
    TBagpuss Posts: 11,237 Forumite
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    It depends on the wording of the covenant.
    A restrictive covenant which (say) prevents you from working for a direct competitor for a limited time and within a limited geographical area is likely to be enforceable, one which seeks to stop you working for any employer in your field, for a long period of time or over a wide area probably isn't.

    For instance, when I was an employee my contract had a restrictive  covenant preventing me from working for a direct competitor within 5 miles of my then employer, for a period of 3 months - it was designed to stop employees from 'poaching' clients, and as most likely enforceable. Having a similar covenant which purported to prevent me working anywhere within a 100 mile radius for 1 year probably wouldn't be enforceable.  I am aware of a former co-worker who did have to wait to start a new job - the new employers were made aware of the covenant and they took the view that it was enforceable, and they pushed his start date back to comply with the 3 month restriction. I suspect that they were right, as the covenant was reasonable and limited in both time and distance. 
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • kazwookie
    kazwookie Posts: 14,350 Forumite
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    Read what is says carefully,.

    I once had one in a contract, and it basically said I wouldn't work for anyone with in a 30 mile radius..........not even shelf stacking, I refused to sign, the wording was adjusted, to stipulated names of direct competitors, I signed that.
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  • Dox
    Dox Posts: 3,116 Forumite
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    How enforceable is a restricitve covenancr about working for a competitor . I have read it is highly unlikely it will be enforceable as i cant be stopped from earning a living 
    Don't believe all you read - and try reading the exact wording of your contract. If the limitation is fairly narrow (e.g. named firms, small geographical area, limited time) it is more likely to be enforceable.
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