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Hello, I have a query about RC.
i joined a firm in 2000 as an admin person and my offer letter was my contract until 2013 when i was asked to sign a new contract. At the time of signing, I was part of a 2 man sales force for this small firm. The owner, who used to be a sales person became very ill and stepped back. I stepped up to the plate.
Anyway, the contract contains 12 month non solicitation, non dealing clauses. It’s standard in my industry.
However, due to how things are going now the owner is dead and his child is going to be the new owner, I’m considering my future.
I have been to two different lawyers and both have opposing opinions.
There are weaknesses in my contract, so a second opinion would be invaluable here
1) the contract stated I was an administrator despite being in sales
2) the 12 month terms apply to standard admin people, sales staff and key directors. I’ve seen all their contracts. A one size fits all policy was applied to covenants
2A) since being promoted twice from 2013, I’ve now grown into a more unofficial director role, generating 80% of turnover and 90% firms profit. I understand you can’t grow into covenants. My personal view is that in 2013 I was not at director level and therefore covenants reflecting the same period as more senior staff may render them unenforceable if tested in court.
3) the 2013 contract stated I had a 3 month probation (as one lawyer commented, either lack of attention to detail or a mammoth disregard for my legal position)
4) I have a 3 month notice period
5) at the time of being asked to sign the covenants, I received no consideration. No pay rise, promotion, or other material benefits in exchange for them. One lawyer firmly said this renders them useless as a contract was not formed and another pointed to a term in the contract stating it’s a condition of employment that I may be asked to sign deeds of restrictions from time to time
7) the covenants are in a separate deed
any opinions in this murky subject would be appreciated
i joined a firm in 2000 as an admin person and my offer letter was my contract until 2013 when i was asked to sign a new contract. At the time of signing, I was part of a 2 man sales force for this small firm. The owner, who used to be a sales person became very ill and stepped back. I stepped up to the plate.
Anyway, the contract contains 12 month non solicitation, non dealing clauses. It’s standard in my industry.
However, due to how things are going now the owner is dead and his child is going to be the new owner, I’m considering my future.
I have been to two different lawyers and both have opposing opinions.
There are weaknesses in my contract, so a second opinion would be invaluable here
1) the contract stated I was an administrator despite being in sales
2) the 12 month terms apply to standard admin people, sales staff and key directors. I’ve seen all their contracts. A one size fits all policy was applied to covenants
2A) since being promoted twice from 2013, I’ve now grown into a more unofficial director role, generating 80% of turnover and 90% firms profit. I understand you can’t grow into covenants. My personal view is that in 2013 I was not at director level and therefore covenants reflecting the same period as more senior staff may render them unenforceable if tested in court.
3) the 2013 contract stated I had a 3 month probation (as one lawyer commented, either lack of attention to detail or a mammoth disregard for my legal position)
4) I have a 3 month notice period
5) at the time of being asked to sign the covenants, I received no consideration. No pay rise, promotion, or other material benefits in exchange for them. One lawyer firmly said this renders them useless as a contract was not formed and another pointed to a term in the contract stating it’s a condition of employment that I may be asked to sign deeds of restrictions from time to time
7) the covenants are in a separate deed
any opinions in this murky subject would be appreciated
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