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Unpaid non-competes

30 replies

12mNonCompete · 01/08/2025 09:11

Name change as this is really identifying!

DH has accepted a new (dream) job and handed in his notice but during the due-diligence process his new employer found a 12 month unpaid non-compete period for the eventuality when several other “key persons” have moved to the same company in a 12 month period.

This 12 month period seems to run concurrently with his paid 3 month non compete so it’s 9 months unpaid - assuming that they don’t try to wriggle out of the 3 months paid period. The new company are willing to wait for him (now October/november 2026 as he has a 3 month notice too) but I’m not sure we can last anywhere near that long without his salary!

The unreasonable thing is that the definition of key person is so broad, that it includes just about everyone at the company, which is a few thousand people - some admin staff would probably not reach the salary threshold. This doesn’t feel legal at all as it essentially prohibits just about anyone moving to another big company as it’s almost garunteed that someone else has moved there in the last year.

I understand that this is a “team move” clause and they are legal; they are designed to stop companies poaching whole teams. There are some others who have moved but they work in a totally different part of the business, are much much more senior than him and he’s never actually met (or heard of) them as they left before he started. They had really long gardening leave periods which technically overlapped with his employment, triggering this clause.

He requested clarification from HR last week in his offboarding meet and they said he would hear next week (which is this week), as the week is almost over he chased them yesterday evening for an answer. They have come back saying that most of the lawyers are on holiday this week and next week so it’s going to take a long time for an answer.

This feels totally unreasonable, is there anything he can do to get them to hurry up?
Is this actually a decision that the lawyers need to be a part of or is this a decision that would be made elsewhere in the business and the lawyers just draft the waiver? Has anyone else had something this restrictive?

Just to add more detail, his boss is on holiday for three weeks and is moving to a different role when he gets back, although DH would still report into him. The day before he got his offer from the new company, his boss asked him to step up and take on all of his team lead responsibilities going forward. He handed in his notice before this was communicated to the team but his boss asked him to do it anyway as he doesn’t have anyone else… so DH is helping them out quite a lot and doesn’t have his boss around to push anything through with hr/legal.

OP posts:
Notanartist81 · 01/08/2025 09:23

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Notanartist81 · 01/08/2025 09:24

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Notanartist81 · 01/08/2025 09:25

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12mNonCompete · 01/08/2025 09:26

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Sorry just stressing out 🙈

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Notanartist81 · 01/08/2025 09:27

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12mNonCompete · 01/08/2025 09:30

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Thanks, I’m on mat leave atm so it’s not easy to get it out of my mind. Normally I would be too focused on my own stuff.

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minipie · 01/08/2025 09:32

There are legal rules around non compete clauses and anything too restrictive will be invalid. But what is too restrictive depends very much on the individual situation.

I suggest it would be worthwhile your DH finding a decent employment lawyer (independent of the company!!) and getting their views on the validity of this clause. It will cost him but nothing compared to 9 months’ salary. If DH is in touch with any ex colleagues who have previously left the company, and had the same sort of contract, it’s possible some of them may already have sought advice about the same restriction, and might be willing to share the advice, or at least share who they got advice from.

minipie · 01/08/2025 09:37

sorry just to clarify - the HR/lawyers who are looking into this- are they at his old company or the new one? I read it as being the old
company in which case I’d assume they will say it is valid!! (Whether it is or not!)

12mNonCompete · 01/08/2025 09:49

minipie · 01/08/2025 09:37

sorry just to clarify - the HR/lawyers who are looking into this- are they at his old company or the new one? I read it as being the old
company in which case I’d assume they will say it is valid!! (Whether it is or not!)

The new company have looked at it, flagged it to him, and wrote an email for him to send to the old companies legal team asking for a waiver. They haven’t given an indication on whether it is enforceable but they’ve put a clause in DHs new contract saying that if it is enforced they will pay him the lost salary (but only once he starts!) They don’t seem willing to take on the legal risk of him starting early.

The old (current) company lawyers are the ones who are all on holiday. I doubt they will come back saying it’s not enforceable as all the triggers have clearly been met but it feels like the contract itself is overreaching.

He only knows people who have left because they were asked to resign on compromise agreements who would have had their own exit docs that they can’t talk about.

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Notanartist81 · 01/08/2025 10:06

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12mNonCompete · 01/08/2025 10:18

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Because of 9 months without cashflow… We don’t have savings to cover that long.

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MauriceTheMussel · 01/08/2025 10:27

wtf has the new company been given sight of his old contract?! Don’t tell the old company that

MissScarletInTheBallroom · 01/08/2025 10:30

Your husband needs to get his own independent legal advice.

Obviously his company's own in house lawyers are not going to come back and tell him the non compete clause they put in their own employment contracts is unenforceable.

12mNonCompete · 01/08/2025 10:32

MauriceTheMussel · 01/08/2025 10:27

wtf has the new company been given sight of his old contract?! Don’t tell the old company that

His old contract states that he has to show it to the new company!

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minipie · 01/08/2025 10:33

Ok, if the new company lawyers have had a look and aren’t saying it’s invalid/willing to take the risk, then my guess is it’s probably borderline. If they’ve looked too then no point taking separate legal advice.

Very good of them to cover the 9 months pay if clause is enforced, even if it’s only once he starts. Suggest you look into loans to cover that period, knowing you’ll be able to repay the principal once he begins.

minipie · 01/08/2025 10:33

Old company will doubtless say a) clause is valid and b) no waiver. Why would they agree??

12mNonCompete · 01/08/2025 10:49

minipie · 01/08/2025 10:33

Old company will doubtless say a) clause is valid and b) no waiver. Why would they agree??

Because they need him to work for the next 3 months and if word gets out that they enforced this for someone who is clearly not part of a “team move” it would hit morale pretty badly in the other employees.

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Notanartist81 · 01/08/2025 10:51

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MissScarletInTheBallroom · 01/08/2025 10:55

@12mNonCompete He needs his own independent advice. He will be in a much better position to negotiate if he can go back to HR and tell them that he's taken legal advice and been told that anything longer than 6 months is unenforceable so will they give him the OK to start his new job in the new year.

12mNonCompete · 01/08/2025 10:59

MissScarletInTheBallroom · 01/08/2025 10:55

@12mNonCompete He needs his own independent advice. He will be in a much better position to negotiate if he can go back to HR and tell them that he's taken legal advice and been told that anything longer than 6 months is unenforceable so will they give him the OK to start his new job in the new year.

Yeah I think this is becoming clear! He was hoping to wait for them to come back as there was a chance they would waive it but it feels like they might drag this out.

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12mNonCompete · 01/08/2025 11:01

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Yeah it must have 100% happened before which makes the delay really frustrating.

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Notanartist81 · 01/08/2025 11:12

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Notanartist81 · 01/08/2025 11:13

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RoseaPlena · 01/08/2025 11:28

If they come back and say that clause will apply then your husband needs to take his own advice from an employment lawyer. Remember that the old employer will need to take him to court to enforce the restriction- is this likely?

Customs · 01/08/2025 11:49

It sounds like your new employer sees this as enforceable so I don’t think independent legal
advice will help you. Even if the advice stated it’s not, the new employer clearly feels it is unless the old employer waves it. I think you are going to have to wait for people to come back from holiday.