Employment contract - enforcement of conditions after termination

dc197

I have a contract of employment which contains a clause saying that I can't work for a rival for 12 months after leaving the current employer (and another clause saying I agree that the first is a fair clause).

I don't understand how any clause in a contract can be enforced after the contract (after the employment) ends.

Can you talk me though it please?

born_again

It's called gardening leave & very common in certain trades.

redped

https://forums.moneysavingexpert.com/discussion/comment/81910467#Comment_81910467

The OP says they can't work for a competitor AFTER leaving the company, which is definitely not gardening leave.

dc197

Thanks

I don't think it's gardening leave. That's where they continue to pay me even though I'm not doing any work, and restrict me from doing any other work during that time.

This clause is about after the employment ends.

born_again

Maybe gardening leave is wrong term.

But it is a common clause is certain area's.

Woodstok2000

It's a non-compete clause, and is enforceable under specific conditions as a restrictive covenant. More info here:

https://www.acas.org.uk/employment-contracts-and-the-law/exclusivity-clauses

Most employers in specific industries will include these, but they are usually very limited and can often be waived with reasonable discussion up front.

monkey-fingers

12 months seems very unreasonable.

These are normally 3-6 months.

Might be worth taking legal advice. For instance….

https://www.elitelawsolicitors.co.uk/non-compete-clauses/

I don't know them, but Google threw it up.

Generally, in my industry (IT) those I've seen normally are applied to Sales people or Service Managers, but providing they don't get involved in previous customers or try to steal business, they'll not be enforced.

Marcon

There's a clear and balanced explanation here: https://www.citizensadvice.org.uk/work/after-leaving-your-job/if-your-employer-says-you-cant-work-for-a-competitor/

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6658100/employment-contract-enforcement-of-conditions-after-termination

Contracts can have terms that survive termination, things like data protection are a common one, you wouldnt want your bank publishing all your personal data online just because you have closed your account with them in the same way you can't take IP from your current employer and give it to your next employer just because you ended the contract. There is often a particular clause which states which clauses survive termination.

A non-compete clause isnt uncommon and you'd expect it to be a clause that survives termination. It however can be one that can be deemed "unfair" if challenged in the courts. Its not a black and white thing though, the longer it is and the broader it is the more chances there are of defeating it but counter balancing that can be your seniority/access to privileged information and any golden goodbye you receive on leaving.

You can't work for anyone at all for 24 months for a call centre agent on NMW you could be fairly confident is unenforceable. As a "Director Of" with highly transferable skills being told you can't work for 2 named competitors for 6 months and there are 100+ other local companies where you would be a good fit then thats much more likely to be seen as fair and enforceable. Basically balancing your need to be able to earn a living -v- protection of your former employers IP, customer list, future strategies etc.

I have known in the past for someone to intentionally break their non-compete clause but their new employer agreed up front that they would pay to defend and settle any claim for breach of contract.

dc197

Thank you, very clear

Clive_Woody

https://www.ukemploymenthub.com/the-future-of-non-compete-clauses-government-consultation-signals-potential-reform/