Warning of Redundancy - Contract Restrictions Agreement

During my period of being furloughed from work, I received a letter from the Commercial Director of our company warning of possible redundancies within my division and they were looking for volunteers before moving onto compulsory redundancies. Due to there being over 20 roles affected, the rules of collective consultation would apply and that the process would take between 6 & 7 weeks. 

Further to receiving the warning, I applied for a role advertised with another company, whom our company would class a competitor to one of our divisions, but not the division that I work in. I was then recalled into work and one week later I was offered the role applied for at the competitors company. I therefore discussed voluntary redundancy with my sales director, which was turned down, so I handed in a formal resignation letter. On discovering I would be moving to a competitor, I was informed that due to a Restrictions Agreement within my signed contract, I would not be allowed to work for the other company, and if I were to take the offer, I would be taken to court. 

Although my SD has now informed me verbally, that I would score too highly to be made redundant, what is the legality of restricting my employment elsewhere within the industry when there is still a redundancy process underway?

Comments

  • Masomnia
    Masomnia Posts: 19,506
    Name Dropper First Post First Anniversary
    Forumite
    edited 25 July 2020 at 9:50AM
    If you don't think that a restrictive covenant in your contract is enforceable you'd probably need to take proper legal advice, but being made redundant or being at risk of redundancy won't in and of itself make the clauses unenforceable. 

    So I'd get advice, or ask nicely to be freed from the RC, or the other option is to call their bluff as often it isn't economic for a company to enforce them (you're opening yourself up to all kinds of issues with the new employer potentially though and it could be a struggle). Your resignation will save them money in redundancy costs so they might consider letting it go. 

    The other issue you might have is that they do not have to accept it if you want to rescind your notice.

    One for proper advice imho.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
Meet your Ambassadors

Categories

  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.8K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards