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Hi there everyone, hope you can help.
I'm currently employed as a Marketing Consultant for a marketing consultancy company. Let's call them Company A.
As part of my role I work directly with a number of small business clients, advising them on marketing approach. One of them (let's call them Company B) have offered me the chance to come aboard full time and take up employment with them.
It's a big step up and I'd love to be able to say yes.
I've had a check of my contract of employment with Company A and I can see no restrictive covenants - great news.
However, it seems as though there is a restrictive covenant in the consultancy agreement between my employer, Company A, and my client, Company B...
In the consultancy agreement between the 2 companies, it states that if Company B would like to hire anyone from my employer, Company B would be due a fee to Company A, equal to 100% of my annual salary (£57,000).
So, I have a few questions...
1) is a clause like this likely to be enforceable considering it's waaaay above the market rate for what a recruitment agency would charge (typically around 18% of year 1 salary)?
2) my employer might be about to go through a redundancy campaign, placing a number of us at-risk. Would it be tenable to try to enforce a clause like this if I'm made redundant? Wouldn't that be in 'restraint of trade'?
3) how likely is it my employer would be willing to put in-writing that they will not pursue a clause like this IF I put myself up for voluntary redundancy? Can this be included as part of the negotiation?
Thanks in advance!
I'm currently employed as a Marketing Consultant for a marketing consultancy company. Let's call them Company A.
As part of my role I work directly with a number of small business clients, advising them on marketing approach. One of them (let's call them Company B) have offered me the chance to come aboard full time and take up employment with them.
It's a big step up and I'd love to be able to say yes.
I've had a check of my contract of employment with Company A and I can see no restrictive covenants - great news.
However, it seems as though there is a restrictive covenant in the consultancy agreement between my employer, Company A, and my client, Company B...
In the consultancy agreement between the 2 companies, it states that if Company B would like to hire anyone from my employer, Company B would be due a fee to Company A, equal to 100% of my annual salary (£57,000).
So, I have a few questions...
1) is a clause like this likely to be enforceable considering it's waaaay above the market rate for what a recruitment agency would charge (typically around 18% of year 1 salary)?
2) my employer might be about to go through a redundancy campaign, placing a number of us at-risk. Would it be tenable to try to enforce a clause like this if I'm made redundant? Wouldn't that be in 'restraint of trade'?
3) how likely is it my employer would be willing to put in-writing that they will not pursue a clause like this IF I put myself up for voluntary redundancy? Can this be included as part of the negotiation?
Thanks in advance!
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