My contract - leaving my job

[fairy!]

When I took on my job 2 years ago, I signed the contract, as you do. I didn't question the section about leaving the role, as that wasn't on my mind at that point, I was just starting, I thought I'd stay forever!

Anyway... the contract basicly says that if i quit, I can't take on another role which provides the same "goods" and "services" as my current employer for 6 months. Well, my job is my job, that's what I'm qualified in, that's where my skills are... so what am I meant to do for 6 months??

If I take on a similar role to my current one, what can my employers do about it? There would be no loss of earnings for them, as I wouldn't go & work for anyone in direct competition.

Advice please!

[dot.hawkes]

It's a sanity claus, no seriously, how can you provide the same good and services as their firm if you don't work for them!! You can supply new goods and services belonging to another firm that may appear similar, but may be intrinsically different in many many ways. I havn't heard of such a thing and it sounds quite silly but bet I am wrong lol

[Fish the Mod]

Not worth the paper it written on. I had a friend who works in a party shop ( stacking shelves) and they said ( not written) that he couldnt leave to work within the same industry.
I asked a Employment Law specialist firm and they laughed.

Go and work for the direct competition, never worry about loyalty to your past employer - think, you're number one, so just look after that.

[THECORBYLOON]

I have read before of hairdressers having contracts forbidding them from competing within a certain distance of former employers. I'm not sure if that would be classed as restraint of trade, if so, it would not be legal.

[MustafaTickl]

It is a matter that musr be taken seriously. They can draw the attention of anyone who applies for a reference to the prohibition, and if they find you working for someone else in breach of your undertaking they can obtain an (immediate) injunction against you with costs and damages.

[starmack]

It's a type of restrictive covenant and you might usually expect to find it in a negotiated departure, where you planned to work in the same region. I question why it was put in at the start.

The clause could seem oppressive...BUT you admit you signed the contract for the sake of signing it. Now if you had signed it but complained about that clause.....

My hunch is that your signature binds you to that clause. I deeply sympathise with you, as I signed a restrictive covenant AFTER leaving an employment and would never do so again.

You should consider chasing down your local citizens advice bureau and paying them a visit to get some better advice. It might be worth queryting whether any European Directive supercedes this type of clause as you signed.....

[Oneeyedvic]

It is a very standard condition in certain industries - especially in sales. The reason for it is if you say sold advertising for The Sun and then went to work for The Mirror, you would have all the advertising contacts and take a load of business away from the paper.

A friend of mine (who is high up in a household name product) recently went over to the direct competition - she had the same clause and had it checked out with her solicitors.

The essence of it was that they 'could' sue as MustafaTickl correctly states - however they would not automatically win as it could be classed as an unfair contract.

The chances of it happening (especially if your employer is small) is pretty minimal especially if you can show that you are not working for a direct competitor and not taking away any business from them.

[thugulike]

You need to consider what the remedy would be. If you already have another job and your company has provided references then it doesn't matter. If you DO require a reference then you need to be careful. Technically it could be breach of contract but I doubt if it would be worth the company pursuing. Have a look on the IDS website (if you can get access) which has a list of precedents from Employment Tribunals on restrictive covenants. You cannot be prevented from working that simply isn't reasonable.

[fairy!]

I would need my current employer to provide a reference. Think I'll go to Citizens Advice. Thanks guys.

[Twenty20]

Restrictive covenants CAN be legal but they can also be difficult to enforce. It really comes down to what your job is at present and what you'd be taking (as in knowledge) to your new employer.

If you're really serious about it I wouldn't bother with the CAB but go to a solicitor specialising in employment law and get their expert advice. You should get a free 30 minute consultation.