Employment contract help when leave.

KettleWentBang · 2021-02-19T21:53:43+00:00

I have a contract. That states I cannot open a business in the same field. Within 2 years and a certain mile radius. Surely they can't state what I can or can't do when I leave? Or a Have I missed something.

user141635812632 · 19/02/2021 21:55

That's not unusual.

Viviennemary · 19/02/2021 22:01

I've heard this before. Of course they can ask you to sign. Up to you whether or not you do.

prh47bridge · 19/02/2021 22:03

It depends. If your employer can convince the court that the restriction is designed to protect their legitimate business interests and does not go any further than is necessary to protect those interests it will be upheld and enforced by the courts. In this case your employer is trying to stop you competing with them. Whether a restriction for 2 years and within the radius specified is reasonable depends on the seniority of your position, how much access you have to sensitive information, etc. In general restrictions of more than 6-12 months are difficult to justify but it may be that your employer has good reason for this. If you are thinking of setting up in competition with your employer you need to take legal advice.

thecognoscenti · 19/02/2021 22:04

Yes, a restrictive covenant like this is quite normal. Two years is a long time and they might be on the unreasonable side there but it's very usual to include a clause like this which prohibits competing with the employer if you leave.

ChancesWhatChances · 19/02/2021 22:11

Depending on what field you’re in, restrictive covenants can be upheld in court. They’re to prevent you from taking business clients and secrets and profiting from them.

RedcurrantPuff · 19/02/2021 22:12

@prh47bridge

It depends. If your employer can convince the court that the restriction is designed to protect their legitimate business interests and does not go any further than is necessary to protect those interests it will be upheld and enforced by the courts. In this case your employer is trying to stop you competing with them. Whether a restriction for 2 years and within the radius specified is reasonable depends on the seniority of your position, how much access you have to sensitive information, etc. In general restrictions of more than 6-12 months are difficult to justify but it may be that your employer has good reason for this. If you are thinking of setting up in competition with your employer you need to take legal advice.

This

Original poster

KettleWentBang · 19/02/2021 23:56

I have no intention of setting up a similar business. But thought it seemed bizzare that was all. Especially the 2 yrs bit.
Thinking if other employees wanted to that's a long time to put life on hold. It's a family. Business and I can safely say that none of the employees would take business or customers from them. Even if they did open a similar business at any point.
Thanks for Clearing it up

OP posts:

Sunflowergirl1 · 20/02/2021 06:45

@RedcurrantPuff . As per @prh47bridge . A friend had a similar clause in her draft contract which she asked me about and I suggested she took specialist advice which basically said anything over 6 months would be very difficult for the employer to justify. They agreed to amend it for her

Hollyhocksarenotmessy · 26/02/2021 11:56

It appears in many contracts, but they are often not enforceable. The restrictions need to be reasonable in terms of time, distance etc, proportionate for the role ( so supermarket trying to stop a cashier working for another supermarket would be laughed out of court), and necessary to protect the business from a genuine risk or loss. Due to the time period of 2 years, it is exceedingly unlikely to be upheld.