Employment contract and working for competitors

[Ellenmelen81]

Hello! I’m new to this forum and I’m trying to find some help for my best friend, she is leaving her current employment to as a field sales rep in the giftware industry to work for another giftware company, they current company have told her she is in breach of her contract as she signed in her employment contract she would not work for a similar company for 12 months. I believe this is an unreasonable amount of time, and they 2 companies do not sell the same products so can they be counted as direct competition? Have any cases gone to court on this matter? She’s extremely worried about the new company finding out about this clause and then withdrawing her new job offer from her

[jaguarsuk]

It's my understanding that anything over 6 months in a none compete clause is generally held as being excessive and also it tends to be those classed as key employees to the business that none compete clauses are applicable (Directors or senior staff privy to commercially sensitive information).

That said, I'd listen to what Ula has to say on the matter more than I, as they know much more about employment law than me.

[ULA]

To rely on a restrictive covenant in a contract of employment an employer needs to be able to show that it is designed to protect a legitimate business interest (e.g. goodwill or confidential information); and goes no further than is reasonably necessary to protect that interest.

Depending on the level your friend is at in the organisation will have some bearing on the validity of the clause, as will the scope of the clause. If you could get the clause posted up here it would be easier to be able to provide some guidance on its validity.