Can work do this

[Sydneysider76]

Ok so I work in retail and resigned from my job (in head office ) for another role

On Saturday the new place withdrew the job due to carona impact on their business

My old place have already announced my replacement so I can't stay
There is a clause in my contract to say I can't work for some other companies unless they make me redundant
So I am the only breadwinner with two small children
One of the competitors potentially has a role for me and my current employee won't lift the clause
In any other circumstances I get it but really now

Can they do this in the current climate
In Australia if that makes a difference

Really worried
We rent have no income now as my husband can't work due to a car accident years ago
There is no one hiring retail right now

Could the competitor use a non-work referenfe?

Taking you to court over this would be time consuming and expensive. I’d take the risk that they won’t do this and go for the new job anyway.
You have to feed your family and I would be arguing that this covenant is unreasonable in the circumstances.

But when you resigned to take the other job, was that not in a competing business? Or does your contract name the companies you can't work for?

Non-compete clauses are usually only put into employment contracts for quite senior positions where there is a lot of exposure to information that could be considered confidential. If that doesn't apply to you then perhaps the clause would be considered unfair or unreasonable if it ever went to court.

Ignore the replacement and advise that you wish to withdraw your resignation. If they then say no, you've got to go, then take the new job anyway. Claim that they have effectively made you redundant. Non-compete clauses are quite hard to enforce in practice, especially if it means that you are not able to earn a living. And with everything, everywhere shutting down it will be a long time before they can take a claim to court.

Yes they can do this, I’m sorry. The current climate doesn’t change the law. Secondly saying you wish to withdraw the resignation is a silly suggestion, it’s their choice whether they accept that or not, not yours. The new employer is within their rights to withdraw the offer. You’re not made redundant if you have not worked there for any period of time. You would be entitled to no money, no one has made you redundant.

However the question here is what are they going to do about it if you accept the new job. They would need to come after you in court. Or, they could speak to your new employer and ask them not to hire you due to the clause.

If you need the money, I’d take the risk and accept the new job. There is a good chance you’d get away with it. I’d also not communicate with your current employer on it further.

Sorry op the other thing they could do, if you’ve not left the current place yet, is they could with hold final payment, and ask you to leave immediately.

As said, I’d risk it, but not tell them I was working for a competitor in this scenario,

It's a very senior job

The one I was leaving to was not a names competitior so was ok

The new place is actually the one with the contract as they sold my current business so they cannot offer unless I get the clause lifted

Currently they are thinking about it

I played on the emotional and taking away my future livelihood
So let's wait and see

Thanks for the replies