Non Compete without Garden Leave or Payment in Lieu

[kryjas]

I recently resigned from my job, the company is not offering any garden leave or payment in lieu, but has made me to sign the termination agreement which has a clause which does not allow me to work in a competitive business for a restricted period of 6 months. The clause goes as follows:

XX. The employee shall not without prior written consent of the company during the restriction period be engaged with any business which is in competition with the company. The clause shall not restrain the employee from being engaged with any business so far the employee's work shall relate solely:
XX.1 to those geographical areas (if any) where the business is not in competition with the company or
XX.2 to activities of nature with which the employee was not with during the period of 24 months ending on the date of termination

What should I make out of this as this sounds very restrictive and leaves me un-employed for 6 months? Will this be applicable for the whole of UK (as no geographical area has been defined)? Does this apply outside UK i.e can I go work outside?

[dan_1207]

Re: Non Compete without Garden Leave or Payment in Lieu

They're a load of rubbish. See http://www.legalbeagles.info/forums/...-work-covenant

[kryjas]

Re: Non Compete without Garden Leave or Payment in Lieu

Thanks Dan, does this mean that this is not enforceable with UK or elsewhere? Apologies for my lack of legal understanding...

[kryjas]

Re: Non Compete without Garden Leave or Payment in Lieu

The above clause was in the employment agreement, a part of the termination agreement states:
Save that as referred to in clause XX, in the event the employee is seeking to commence work for a competitive business prior to 6 months, he may contact the company to request permission in writing, which permission may be given or withheld at the discretion of the company.

Very very confusing...

[dan_1207]

Re: Non Compete without Garden Leave or Payment in Lieu

Thanks Dan, does this mean that this is not enforceable with UK or elsewhere? Apologies for my lack of legal understanding...

The clause is too wide and so would be hard to enforce through any formal avenues.

[kryjas]

Re: Non Compete without Garden Leave or Payment in Lieu

Also regarding the following statement in the termination agreement with respect to clause XX (as originally stated in the employment agreement).

"Save that as referred to in clause XX, in the event the employee is seeking to commence work for a competitive business prior to 6 months, he may contact the company to request permission in writing, which permission may be given or withheld at the discretion of the company."

The tone changes from "The employee shall not without prior written consent" to "The employee may contact for written consent". Which I guess is contradictory in itself.

[kryjas]

Re: Non Compete without Garden Leave or Payment in Lieu

Any other expert views on this? Or should I consider this non enforceable.

[twigthewonderkid]

Re: Non Compete without Garden Leave or Payment in Lieu

Not an expert view but the advice given by Dan_1207 is not saying it is not enforceable but rather that the likelihood is too hard to be successful.

The burden of proof rests with the ex-employer.

Only you know the financial strength and commitment of your ex to see such action to the end. The higher up the company, the "goodwill" you left on might impact on such commitment to restrict you.

Don't go actively targeting their client base and don't make a target of yourself such as boasting the business you've won on social media.