Can I go to a competitor?

[TheChemicalsAintGotYouBaby]

Have applied for a role at a direct competitor.

Am not in sales, but mid-senior in a role a bit like marketing (so closely linked to sales)

Does my contract forbid me to move to a direct competitor within 6 months of leaving current post, or is it just a case of not being able to approach any of our customers (I wouldnt) or suppliers (this would be annoying, but not the end of the world?

My brain is a bit covid fried and the more I look at it, the less I understand it!

I would understand from clause 14.1.5 that you can’t move to a direct competitor if the area of business is the same. So if you worked for a company that made widgets and woggles, and you were then a widget sales rep, you could work for a woggle company but not for a widget company.

That makes sense - thank you.

I am more on the widget side but potentially would be moving to a woggle company!

I believe it also has to be 'reasonable'. Good luck at the woggle company.

Yes, there's a clause stating he cannot work for a competitor for 12 months.

But these clauses are extremely difficult for an ex employer to enforce. They need to be reasonable and proportionate. A generic 12 month ban on any type of work anywhere for a competitor, it would be laughed out of court.

We have this in our contracts but people leave for competitors all the time, no one ever enforces it.

I wouldn't worry about it; these clauses are essentially unenforceable, and unless you have highly specialist knowledge it is very unlikely to be worth your current employer's time to be worth pursuing it.

On the plus side, you may well be put on gardening leave!

I'm a litigation lawyer and specialise in restrictive covenant disputes. Whilst the above poster is wrong to say that non-compete clauses are "essentially unenforceable" (because they are sometimes enforceable), USUALLY a clause such as 14.5 in an employment contract will be unenforceable as usually such a clause will extend beyond the legitimate business interest the employer is entitled to protect.

Despite the fact that the non-compete is probably unenforceable, you may get a threatening letter from your former employer once you take up a role at a competitor. I see this a lot.

The other restrictive covenants are more enforceable and are pretty "normal". Don't try to poach your employer's customers or employees with whom you dealt in the 12 months before you left, and you'll be ok.

Just for clarity, I meant clauses which specifically try to ban you from working at any competitor are generally unenforceable, rather than all noncompetes. 🙂IANAL, but that is what I have always heard lawyers say about them. Thank you for your expert input @1Wanda1 .

Thats all really helpful - thank you.

As an update I've been offered the role and have now been advised to seek further legal advice by the new employer before handing in my notice.

I'm really scared that this incredible opportunity is going to go tits up :-(

There is an element of widgets to it although I could lie about this - it's a detail my current place wouldn't be able to prove.

Whilst I can't advise you on your specific situation, what I can say is that non-competes of the type in your employment contract are almost always unenforceable as a restraint of trade. People have to be able to earn a living in their sector/profession. The circumstances in which such a restriction can be enforceable are where you are very senior, e.g. the CEO, and usually also involve owning shares in the company.

The other restrictions - on poaching/dealing with clients or poaching staff - are usually enforceable, so definitely steer clear of doing anything which might breach those. Also, your new employer should take an interest, because if you did breach an enforceable covenant, they could face a claim for procurement of your breach. Generally this is a claim which is asserted in these circumstances, because companies usually have deeper pockets than individuals.

I am in a similar situation. Employer pretty threatening legal action if I work for a competitor in any role. The competitor list has over 100 cimpanies. The new role is not client facing at all , my previous one had client dealings but not sales accounts or marketing. Wondering if there is provision to sue ex employer for undue harassment trying to enforce a very wide non compete . Surprisingly whilst they send a legal notice out , they still haven't put me on garden leave .

What do you mean sue for harrassment? Shouldn’t you just defend any claim they make, e.g. by stating that the restrictions are too wide.

I will defend. But it is causing undue stress and what if new employer pulls out If they don't want the hassle