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FloweryBeanBAg and you help please?

8 replies

Gapants · 07/12/2011 12:12

I have been recommend your name by another MN'r

k, this is on behalf of my DH, he/we really need some employment law advice. He has a non-compete clause in his contract, we need to know, given his back story (details to follow) do they have a right to enforce the non-compete clause which states that I can?t work for a competitor for 3 months? And, if I just ignored it, would they realistically pursue it?

So MR GAPANTS writes--
For the past 6 months or so during PDPs (Personal Development Plans) my boss has been informing me that she thinks that there are things going on in the business that might involve movement/promotion for me. She said that I should try to hand over some work to colleagues, so that I would be more easily moved to a new position. At my most recent PDP she implied that she didn?t know whether anything would materialise when I pushed to be able to speak to the CEO or directors about their plans for me. She then advised that it might be a good time to look for an external job to use as leverage with my current employers.

This I did, I found a job advertised and got put forward for interview. I informed my boss of this and she said it sounded like a good job, but I was still keen to stay with my current employers.

When I got offered the position with the company I had interviewed with I spoke to my boss. She said I should take it, but as my current employers have a bonus scheme which would mean I would miss out on my bonus payment in March, I didn?t think I could make the sums add up - my wife goes to statutory maternity pay in April, so I need the bonus to see us through. I informed my recruiter that I was finding it difficult to make the sums add up, and she went back to the new company to see if they could move on salary or an up front payment.

My boss then called and said that she could pay me the bonus if I accepted the new job as she thought I had earnt it. She told me that she had had the offer authorised by a director. I relayed this information to my recruiter, who in turn told the new company. They informed us that there was now another candidate who they were waiting to interview. I informed by boss, so she withdrew her offer.

Next the new company asked me to do a psychometric test, which I completed. The following week I was offered the job once again, which I accepted once I received the offer letter. The messing about by my boss left me with no choice but to accept the position - the new job is a good one and the new company a really good one, but my loyalty still really lay with the old company.

I handed in my resignation, told my boss that I was regretful but gave my reasons, which she accepted. She said she would check whether she could renegotiate my bonus but wasn?t hopeful.

This week I have been handing over my accounts, and today I went in to the office to meet my boss. She brought the Director of HR in, and they told me I was being placed on immediate Garden Leave, which was great. They took my laptop and phone on the spot and then showed me my contract. I have a non-compete clause in my contract and they told me that they are going to enforce it. That would mean I can?t start the new job until 3 months after my 2 months of Garden Leave as the new company are in competition. Whilst I accept that this clause exists to protect the business, there are also clauses which state that I can?t deal with any of my current customers for 3 months which I think offer enough protection.

Bearing in mind only a few weeks ago they were actively encouraging my to leave by telling me that I could receive a bonus payment despite leaving, do they have a right to enforce the non-compete clause which states that I can?t work for a competitor for 3 months? And, if I just ignored it, would they realistically pursue it?

OP posts:
Gapants · 07/12/2011 17:36

bump

OP posts:
Collaborate · 07/12/2011 19:39

Hell of a question to ask on a forum. To rely on an answer from an anonymous poster is lunacy. He should get some formal advice and just accept he has to pay for it. People do this for a living.

Gapants · 07/12/2011 20:10

Yes, I realise that. Thank you.

OP posts:
hermioneweasley · 07/12/2011 20:15

The reality of Non compete clauses is that the employer has to take an injunction out to prevent you starting. They may or may not be able to get this depending on how well worded the clause is, how reasonable it is, how close a competitor you are going to etc. it's up to you to take the gamble and start and see what they do.

flowerytaleofNewYork · 07/12/2011 20:24

Can't see anything relevant in the back story. Either the clause is enforceable or its not, and either they will bother or they won't. Your personal view that the other clauses in your contract ought to be enough is irrelevant as well. As an aside I can't see anything indicating they were actively encouraging you to leave anyway, but as I say, it doesn't matter when deciding how enforceable the clause is.

Without reading the clause it's impossible to say, obviously, but these things in practical terms aren't that easy to enforce, and for the sake of 3 months they may not bother, depending on how much difference it would make to them to have you wait 3 months. If it would for some reason make a big difference to them, they are obviously more likely to take action. if in the scheme of things it won't make much difference and they would incur legal fees by pursuing it, they probably won't.

Impossible to give a proper view as to whether it's enforceable and/or whether your employer is likely to take action without seeing the clause and knowing more about the situation.

You are probably going to have to just take the risk (assuming your new employer is happy to allow you to start while under those restrictions) and see what they do, and pay for some proper in-person advice from someone as well.

Gapants · 07/12/2011 20:29

Thank you both for your input, we are happy to pay for legal advice and will do so when we need to. Just wanted to canvass opinions on here- from those who might have been in the situation themselves, or if we were very lucky a legal eagle Grin

flowery are you flowery bean bag with a name change? Would be happy to PM you with more information if you are interested at all??

Thanks again.

OP posts:
flowerytaleofNewYork · 08/12/2011 14:37

Yes it's me flowerybeanbag, although have just been flowery for a while now. Xmas Smile

I get quite a lot of PMs from people asking for advice off the boards and took the decision a while ago to politely decline all of them as it was getting a bit silly, although I am still happy to advise on the boards for everyone's benefit.

Gapants · 08/12/2011 19:03

No worries, thank you for your help thus far.

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