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Held to ransom

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Comments

  • Undervalued
    Undervalued Posts: 9,767 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Keynesfun said:
    I’m not saying she can’t but how hard is it to get a decent job 
    she’s earned her right to Step up the ladder in her field 
    I’m thinking no court would let them hold her to ransom in these times 
    do you agree 
    No I don't - sorry!

    That is not to say that your wife doesn't have a case, she may have, but these type of clauses can be enforceable if properly drafted and depending on the circumstances.

    The obvious question is why did she agree to such a term if she wasn't willing to be bound by it? It is never a good starting point to sign up to something hoping that either it is not enforceable or that the other party won't bother to try.

    Even if she has a case she could still end up in an expensive legal battle against, presumably, a far better resourced opponent.
  • Dox
    Dox Posts: 3,116 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Keynesfun said:
    Hello people my wife has just handed her notice in with her company she has to give 3 months notice 
    she is going to work at a competitor in her field and her contract states Once you leave to work for a competitor you can’t work for 6 months 
    now it looks like the company might hold her to this without pay 
    she has a 12 year old daughter 
    so they expecting her to not work and earn money for the period of time 
    the company our willing to wait for her 
    but this surely wouldn’t stand up in court if the need arises 
    opinion plz 
    Steve 
    Why would her current employer pay her if she isn't working for them - ditto the new employer?

    If your wife works in something of a niche area, and she has specialist skills and knowledge, then six months isn't likely to be seen as an unreasonable time. Businesses are entitled to protect themselves and are much more likely to do so fairly aggressively  in the current difficult trading environment. You say her potential new employer is 'willing to wait', so it sounds as if they knew she has restrictive covenants in her current contract. They will therefore also know that if they go ahead and hire her without waiting for the relevant six months to pass, her current employer could bring a claim against them for inducing your wife to breach these terms. 


  • TBagpuss
    TBagpuss Posts: 11,237 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    OK, what you are describing is a restrictive covenant. They are legally enforceable but they have to be reasonable, so your wife needs to look at what her contract actaully says.

    For example, if it says she cannot work for a direct competitor within (say) 10 miles of her current employers offices for 6 months after she stops working for them, it may well be enforceable. 

    If it says she cannot work for a direct competitor anywhere in the country for that period, it may not be, depending on the nature of the work she does and the client base of the company. 
    This type of contract restriction are usually designed to prevent people from poaching clients / trying to take clients with them when they move jobs, and sometimes to make it harder for them to pass on commercially sensitive information of make use of commercially sensitive knowledge.
    Legally, if she challenged it, the company would need to show that the clause was "designed to protect the businesses legitimate business interests; and that it extends no further than is reasonably necessary to protect those interests"  A court can look at what is normal in the relevant industry (for instance, this kind of clause is very common in the field I am in, I have never had a contract without a similar provision.

    However, your wife may find that her new employer is unwilling to take the risk and have her start if it would put her in breach of the term, not least because her current employer could potentially sue them as well as her, if the y assert that the new company has induced her to breach the contract.

    Your wife can of course request that her employers waive the term or agree a shorter period, but they may take the view that it is not in their business interests to do so. 
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • superbigal
    superbigal Posts: 625 Forumite
    Part of the Furniture 500 Posts
    A very interesting case in my locality where the claim was deemed very weak.  Worth a read.
    https://www.eveningtelegraph.co.uk/fp/dundee-hairdresser-faces-legal-bill-of-10k-despite-winning-case-against-ex-employers/
  • MEM62
    MEM62 Posts: 5,370 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 8 October 2020 at 10:45AM
    Keynesfun said:
    Hello people my wife has just handed her notice in with her company she has to give 3 months notice 
    she is going to work at a competitor in her field and her contract states Once you leave to work for a competitor you can’t work for 6 months 
    Is this a condition in her main terms and conditions (contract of employment) or are they stipulated in a separate covenant?  
  • Hi

    I disagree with some of the advice here. She has a human right to certain things (food, home). Depending on your wife's role it is firstly unlikely they will take this to court and a defence can be mounted on the grounds of reasonableness. Please don't be bullied or assume that the work contract will be deemed legal, reasonable etc.


    Oh sorry I had no idea this contractual term was going to remove her home and prevent her eating. 

    What a load of tosh. 
    Your friends and family are lucky to have you in their lives. Your so full of warmth.
    March 2020 - 21k of debt; September 2020 - 14k of debt. Debt free target date September 2021 
    Diary of paying down debt whilst living abroad:https://forums.moneysavingexpert.com/discussion/6181237/5-000-miles-and-even-more-pounds#latest


  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Hi

    I disagree with some of the advice here. She has a human right to certain things (food, home). Depending on your wife's role it is firstly unlikely they will take this to court and a defence can be mounted on the grounds of reasonableness. Please don't be bullied or assume that the work contract will be deemed legal, reasonable etc.


    Oh sorry I had no idea this contractual term was going to remove her home and prevent her eating. 

    What a load of tosh. 
    Your friends and family are lucky to have you in their lives. Your so full of warmth.
    Rather Katrina was cold and accurate than just plain wrong... :)
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