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Hello
I handed in my letter of resignation and have 1 month notice period.
I told my employer I am setting up limited company which can be a competition to their business.
They send me a letter pointing to anti moonlighting clause, in full below.
My question is: can I set up the company while still in employment, provided I will not trade yet, no operations, no work whatsoever for the company, just establishing and paper work, so all is set after the employment is over?
Regards
Jay
The clause:
1.3.4 During the Employee’s employment, the Employee shall devote their whole time and
attention to their duties and shall not directly or indirectly engage or be concerned or
interested in any other business of any kind without the express permission of the Directors
of the Company (the Board) whatsoever provided that nothing in this anti-moonlighting
clause shall prohibit the holding of shares or debentures quoted or dealt in on a recognised
Stock Exchange in the United Kingdom or elsewhere so long as not more than five per cent
of the shares or stock of any class of any one company shall be so held.
1.3.5 Where express permission has been granted by the Board (see Clause 1.3.4. above), the
Employee shall not engage in any activity that the Company believes to be in direct or
indirect competition with the Company’s business, or which is otherwise incompatible with
its business interests, or which in the Company’s view does or might impair the Employee’s
ability to perform their duties for the Company fully and efficiently.
1.3.6 The work as described in Clause 1.3.5 above should not in any way have an adverse effect
on the Employee’s work for the Company, either because of its nature or because it involves
long hours and extra stress.
1.3.7 The work as described in Clause 1.3.5 above should not bring any conflict of loyalty to the
Employee’s position within the Company or conflict with the interests of the Company.
1.3.8 When engaging in any such work as described in Clause 1.3.5 above Employees should not:
• Comment on Colleagues, Clients, or fellow professionals, suppliers and contractors in a
way which the Company would regard as objectionable;
• Involve themselves in any activity which conflicts with the interests of the Company or
would bring it into disrepute
I handed in my letter of resignation and have 1 month notice period.
I told my employer I am setting up limited company which can be a competition to their business.
They send me a letter pointing to anti moonlighting clause, in full below.
My question is: can I set up the company while still in employment, provided I will not trade yet, no operations, no work whatsoever for the company, just establishing and paper work, so all is set after the employment is over?
Regards
Jay
The clause:
1.3.4 During the Employee’s employment, the Employee shall devote their whole time and
attention to their duties and shall not directly or indirectly engage or be concerned or
interested in any other business of any kind without the express permission of the Directors
of the Company (the Board) whatsoever provided that nothing in this anti-moonlighting
clause shall prohibit the holding of shares or debentures quoted or dealt in on a recognised
Stock Exchange in the United Kingdom or elsewhere so long as not more than five per cent
of the shares or stock of any class of any one company shall be so held.
1.3.5 Where express permission has been granted by the Board (see Clause 1.3.4. above), the
Employee shall not engage in any activity that the Company believes to be in direct or
indirect competition with the Company’s business, or which is otherwise incompatible with
its business interests, or which in the Company’s view does or might impair the Employee’s
ability to perform their duties for the Company fully and efficiently.
1.3.6 The work as described in Clause 1.3.5 above should not in any way have an adverse effect
on the Employee’s work for the Company, either because of its nature or because it involves
long hours and extra stress.
1.3.7 The work as described in Clause 1.3.5 above should not bring any conflict of loyalty to the
Employee’s position within the Company or conflict with the interests of the Company.
1.3.8 When engaging in any such work as described in Clause 1.3.5 above Employees should not:
• Comment on Colleagues, Clients, or fellow professionals, suppliers and contractors in a
way which the Company would regard as objectionable;
• Involve themselves in any activity which conflicts with the interests of the Company or
would bring it into disrepute
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