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Restrictive covenants and form of undertaking

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  • Restrictive covenants and form of undertaking

    I work in the recruitment industry and on 14th July 2014 I started working for a local independent that covered engineering, sales&marketinf, IT, office personnel, finance and hr.


    I was the lead consultant for the Engineering division, managing 1 person. On 4th January I handed my notice in as we could not come to a flexible working arrangement agreement (I had an 11 month old baby and my morning commute was sometimes taking 2 hours).


    Following an unsuccessful job search, I decided to set up on my own to recruit sales and marketing (this is the sector I was experienced in prior to joining the employer).


    I have a number of restrictive covenants in place and have now had 3 pieces of communication from my employer around my obligations (one of them a solicitors letter stating that I am in breach of my covenants).


    I must not work in competition with the business for a period of 6 months, up to 20 mile radius - I am 17.5 mile as the crow flies and 22 mike by road. This is one of the breaches.


    I must not deal with any clients or prospective clients that I have been materially involved with, for 6 months. A client apparently called the office for me and when they realised I had left, said they would contact me on LinkedIn.


    I must not deal with any candidates or prospective candidates that I have been materially involved with, for 6 months. I have spoken to a candidate that is registered with their sales and marketing division and they are stating this is a breach.


    I am connected on LinkedIn to one of their clients and they are stating this is a breach. I have another agreement that that covers my LinkedIn connections and I had to delete in excess of 100, manually, already. Copies have been provided to them. The connection I have is actually the md's close personal friend, so he will be aware that I haven't contacted him.


    I've now received a form of undertaking which they have asked me to sign by Monday, staring that I will not continue to trade in a 20mile radius and that all communications with their candidates and clients will cease until the end of my contract.


    Firstly, I think this is some kind of joke and I'm beginning to feel a bit harassed by it all.


    Do I have to sign the form of undertaking or engage in any way with their solicitor? I haven't done anything wrong. I am not going after their clients, nor am I dealing with any of them. And I fail to see how I would be aware of the candidates registered with a division that I didn't work in.
    Tags: None

  • #2
    Re: Restrictive covenants and form of undertaking

    I would think consulting a Solicitor would be an idea let someone independent review the contract and any correspondence from them.

    It appears to be a very grey area in employment law

    Comment


    • #3
      Re: Restrictive covenants and form of undertaking

      Indeed restrictive covenants are an extremely grey area, using a solicitor versed in employment law I a good idea.

      The distance covenant is open to challenge I think clients are not going to travel as " the crow flies" any recognised " mileage chart " or online mileage checker should prove that.
      May be asking a solicitor prepare a declaration that you are not seeking contact with the clients of your ex employer may give you more control of the situation.

      Personally I think the covenants are unreasonable.

      nem

      Comment


      • #4
        Re: Restrictive covenants and form of undertaking

        Thank you both. I have booked an appointment with an employment law specialist for Wednesday. Hopefully they will be able to help me understand the restrictions further.

        Its so frustrating - I have been above board and very transparent from the beginning. When I left their employment, my intentions weren't to start a business. I was seeking employment in a business development role, outside of the recruitment industry. I haven't attempted to take any confidential information, and haven't attempted to contact any of their clients or candidates.

        Do you know if it did ever get to court (I doubt they would push it as I believe these are scare tactics), could the court view their persistence and their attempt to actively widen the restrictions, unfavourably? I almost feel like he's bullying me.

        Comment

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