Legal help needed

[techman]

I need some advice for a friend please. He worked as an account for a company I shall call X. He was made redundant in March from his job but when he joined he signed a contract which said he couldn't work for a rival company in the same position for 6 months.

 

He's just started a new job which is doing a similar job but at have a higher level, and hes received a solicitors letter from his old company saying his new company have to terminate his contract immediately. Can they do this when they made him redundant?

 

It seems incredibly spitefull for the sake of a month!

[andyofborg]

He needs to speak to real solicitor as much will depend on the exact terms of his contract of employment and whether or not the redundancy included a compromise agreement and it's terms.

 

If his ex-employer actually wanted to enforce a restriction of this type they would need to go to court and based on my general impression from talking to people who have been involved in similar scenarios that would be an expensive waste of time for them as the court probably wouldn't enforce it.

[Cyclone]

The clause in the contract would be valid, but as that contract has been terminated it no longer exists...

 

Same question is being discussed here in detail

 

http://www.ukbusinessforums.co.uk/threads/redundancy-and-non-compete-clauses.215463/

[999tigger]

The clause in the contract would be valid, but as that contract has been terminated it no longer exists...

 

Same question is being discussed here in detail

 

http://www.ukbusinessforums.co.uk/threads/redundancy-and-non-compete-clauses.215463/

 

Think this is wrong. How can a non compete clause ever work when someone leaves then?

[L00b]

I need some advice for a friend please. He worked as an account for a company I shall call X. He was made redundant in March from his job but when he joined he signed a contract which said he couldn't work for a rival company in the same position for 6 months.

 

He's just started a new job which is doing a similar job but at have a higher level, and hes received a solicitors letter from his old company saying his new company have to terminate his contract immediately. Can they do this when they made him redundant?

 

It seems incredibly spitefull for the sake of a month!

First bit in bold - that sounds far too broad in scope, and so invalid/unlikely to be enforced. An employer can restrain an ex-employee, but the restrictive covenant has to be proportionate to the employer's interests, and the only valid ones (found so by a Court) that I'm aware of are those 'under-estimating' the employer's right to restrain. To begin with, a employer cannot generally stop an ex-employee from using his/her professional skills in a next job - even if the restrictive covenant is reasonably worded.

 

Second bit in bold - that sounds like far exceeding the ex-employer's remedy if the clause can be enforced (which I doubt).

 

This is one of those situations that will turn on its facts, moreover in a very grey area of HR legal practice, so get your friend to take specialist advice from a HR solicitor. Locally, I'd recommend Emma Digby at CLL.

[999tigger]

Loob it depends hwo the op has phrased it hence he really needs to be intervieweed so the lawyer can actually loo at what was agreed at the time. Was it A specific competitor or any competitir etc. Was he paid for the six months?

 

Take Loobs suggestion and go and see a lawyer.

[Cyclone]

Think this is wrong. How can a non compete clause ever work when someone leaves then?

 

Good question.

 

I've only ever personally known one person subject to such a clause (and it being used).

He resigned and they sent him straight home to stay there for 3 months on full pay. That was his notice period and the duration of the 'non compete'. The contract was still in force because he was still employed and paid by them, he was on "gardening leave".

[999tigger]

Good question.

 

I've only ever personally known one person subject to such a clause (and it being used).

He resigned and they sent him straight home to stay there for 3 months on full pay. That was his notice period and the duration of the 'non compete'. The contract was still in force because he was still employed and paid by them, he was on "gardening leave".

 

It was just my way of saying the answer they were running with was wrong.

Primarily void unless the party seeking to enforce can show its reasonable in scope distance and duration. They have to go to court to enforce it.

 

He needs to see someone so they can go over the details because those tend to get missed on forums. I'd suspect he will be ok for a number of reasons, but he still needs to get it checked so someone can look it over properly and examin the circumstances with the facts. Some are upheld.

[Xt500]

If his new company arnt altering their stance on employing them then untill official court papers land,which I doubt then ignore them.

Paying for a solicitor at this stage is fruitless as there's nothing to defend.

[Cyclone]

It was just my way of saying the answer they were running with was wrong.

Primarily void unless the party seeking to enforce can show its reasonable in scope distance and duration. They have to go to court to enforce it.

And the only remedy for breach of contract is recompense for actual damages incurred.

So they can't demand that a 3rd party terminates a new employment contract. They have no rights over the 3rd party at all.

 

He needs to see someone so they can go over the details because those tend to get missed on forums. I'd suspect he will be ok for a number of reasons, but he still needs to get it checked so someone can look it over properly and examin the circumstances with the facts. Some are upheld.

 

Yep, agreed.