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Restrictive covenant - employee advice

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  • #16
    Re: Restrictive covenant - employee advice

    Originally posted by steampowered View Post
    After reading through a table setting out clauses which have and haven't been enforced by the courts in recent years, I am confident to say that clause is almost certainly not enforceable. These clauses get very closely scrutinised by the courts and have to be reasonable in scope/duration/geographical reach.

    The clause is much too broadly drafted. The drafting prohibits you from being concerned or interested in any business which competes or will compete with their business. See this http://www.bailii.org/ew/cases/EWHC/QB/2012/1524.html for an example of a situation where such a clause was struck down.

    I also think it is pretty unreasonable to have this clause in relation to a junior employee, unless there is a genuine risk that you might use the employer's confidential information to pinch clients. They would need a really incredibly good justification to have any chance of being able to impose that close on a recent graduate.

    I would call their bluff on this and go to work for the new employer without making any more contact with them. I imagine the chances of them taking this to court, particularly when they have a low chance of success, is pretty low. If challenged, I would write to them saying you take the view that this clause is completely unreasonable and therefore unenforceable. However do consider whether you would need a reference.

    What is the duration of the 'Relevant Period'? I think this clause would fall at the first hurdle anyway regardless of the time limit, but if it is longer than six months that would be yet another reason to challenge it.
    Having read briefly, the above link, I have to agree with steampowered.
    I don't think your present employer would be able to prove that the restrictions are fair., or that the company are at risk.
    So do as stempowered advises.
    Go start your new job and say nothing.
    “The only man who sticks closer to you in adversity more than a friend, is a creditor.”

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