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Calling employment lawyers. Resigning and "Restraint" clauses - how enforceable are they?

9 replies

Tinker · 23/01/2004 22:10

This is not for me but for my boyfriend. He's resigning from his job and taking up a similar post for another firm. He's pretty sure the new firm will want his previous client list. However, the terms & conditions of his current post state that he his not to contact any clients for 6 months after leaving. I would imagine that this is pretty standard. So:

  • How enforceable are these restrictions in practice? I know they are ethical but can his current firm actually do anything about it if he did contact them?

  • If they are enforeceable is there a way round them? As I said, I assume this is fairly standard practice and I imagine most firms want the new employees previous clients. So how do they get them legitimately?

  • Boyfriend wants to discuss this with new firm before starting. I'm not sure this is a good idea. Worried they may say "Oh, you're no good to us now, bye bye". If he discussed the problem after he started working there then they couldn't make him do anything that was illegal and they couldn't get rid of him for refusing to do it. I think.

Any help and advise very gratefully received.

Thanks

OP posts:
Lisa78 · 23/01/2004 22:18

Am not an employment lawyer but -
If his contract restricts him from contacting clients, then he would be in breach of it and could be sued even if he has left the firm. I am sure there are ways around it - if the clients were to contact him for example, but these clauses usually prohibit the employee inciting a client to do so which could be something as minor as telling them he is leaving and where he is going. I would imagine his new firm would appreciate his integrity - after all, they wouldn't want him to do the same to them would they?

Tinker · 23/01/2004 22:28

Lisa - thanks for that. It does use the term 'induce'. Re his integrity: do mean he tells now or waits til he starts?

OP posts:
Tinker · 24/01/2004 13:15

Just bringing this to the top in case anyone else has any more views on this.

OP posts:
sis · 24/01/2004 18:08

Tinker, it really depends on the wording of the restraint clause - if it is too wide ranging then the courts won't enforce it but if it is reasonably worded to protect genuine business interests and the company were willing to go to court, then it could be enforceable. As a first step, I would suggest that you get advice from a lawyer (check if you or he has access to free legal advice on your home or car insurance or, if he is in a union, check with them too).

If you want to e-mail me via contact another talker then feel free to do so and we can talk through it but if I don't get back to you straight away, it is because my son is unwell (I have a horrible feeling it is chickenpox as it is doing the rounds in his class!). BTW, I am not a lawyer, my work just involves employment law.

Tinker · 25/01/2004 10:37

sis - brilliant, thanks. I'll send an email tonight, not a lot of time today to copy it all out. He has got access to a lawyer but at this new firm!

Speak later.

OP posts:
prufrock · 25/01/2004 11:21

Tinker
If his new firm have formally offered him a job I would have thought that they couldn't retract that offer just because of what is a fairly standard clause, so he should be fine to discuss this with his new employers.

Spoke to DH - he has a similar clause. His would be very strictly enforced by his current firm, but the only way that they can do that is by putting him on gardening leave. (I am now very anxious for him to move as it means his current firm would pay him for 6 months to do nothing but stay at home and help me )Also, his current firm could not personally sue him for contacting his clients. he wouls be doing so on behalf of his new firm, so any legal action that resulted would be between his old firm and new firm.

bloss · 25/01/2004 11:45

Message withdrawn

Tinker · 25/01/2004 22:45

sis - have sent my (very dry & dull I'm afraid) email. Thanks

Prufrock - that's reassuring about it being the new firm being liable not him personally, that should cheer him up a bit. Sadly, he wasn't given gardening leave - it's tax free isn't it? Think he's already decided he will discuss with the new firm.

Bloss - I agree, it doesn't sound too broad But, according to prufrock might not be so bad after all.

Thanks again

OP posts:
sis · 26/01/2004 11:14

Tinker, I have sent an equally thrilling reply!

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