Legal action

TBagpuss

It sounds as though your contract included a restrictive covenant- whether or not it would be enforceable will depend on the exact terms, and how reasonable they are when seen in the context of your role, the nature of the business etc.
So, for instance, a covenant limiting your right to work for a competitor within a certain geographical area near your old employer might be harder to challenge than one which limited your right to work anywhere in the country, for example. However, it will depend on the specific circumstances- the same terms might be reasonable and enforceable for one job and not for another, depending on what the job Is in each case.
If they sue you and the covenant is upheld they could claim from you for their legal costs and any financial losses they suffer due to Any customers moving with you to your new employer.
It sounds as though you need to get your own legal advice ASAP.

Ozzuk

Just to add, as this question comes up a lot (along with why do I have to honour my 3 month notice) the time to question a contract term is when you are negotiating to join the company.  As above, these are often difficult to enforce but not impossible and there are cases, particularly in sales, where action is succesfully taken.  12 months sounds restricitive though - best answer as others have said is lawyer up - you could ask your employer to step in, but you do risk them letting you go.

oh_really

Does your new employer impose a similar restriction?

steampowered

What was your role?

A 12 month restrictive covenant is extremely long. If it is deemed to be unreasonably long, the whole clause is not legally enforceable. The courts are only prepared to enforce a 12 month non-compete clause in pretty extreme circumstances - e.g. where you were the CEO of the company. Even 3 month or 6 month restrictions come under a lot of restriction.

I suspect you could take the position that the restrictive covenant is not enforceable.

Is there anything you could sue your former employer over? If so, threatening to issue proceedings for that (or issuing proceedings them settling them) could also be a good strategy.

col81

Just a salesperson nothing special. Plenty of people have moved and joined competitors I can name at least 10 with the same contract!

col81

I'm already working for new employer so not sure how that affects things

steampowered

As you were just a sales person, I think you can be fairly comfortable that a 12 month non-compete clause is not legally enforceable. 

The question then becomes how you deal with your employer's letters. I would be tempted to either not respond, or respond simply saying that the non-compete is unreasonable in scope and unreasonable in duration and hence is not legally enforceable. You could state that if legal proceedings are issued you will be seeking your costs from the employer in the usual way.

col81

Hi Steampowered, i have just sent you a PM