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Restrictive covenants, resignation

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  • Restrictive covenants, resignation

    I have resigned from my current employer and because of my understanding of the Restrictive Covenants in the contract expected him to pay me for the 6 months after Termination of the Employment. I agree that normally it is up to Employer to enforce or not enforce Restrictive Covenants, but the way they are written in my contract I do not see that there is an discretion there, but the Employer argue the opposite and believes that he is not required to pay.

    Any advice or view on the subject will be very helpful.

    The clause in "Restrictive Covenants" section is the following:

    --------------------------
    5.9 The Company shall pay the Employee GBP XXXXXX, less tax and other authorised deductions and deductions required by law, in six equal monthly instalments in arrears on the last business day of each month, for the duration of Restricted Period. The Employee agrees that where either:

    (a) he violates the terms of this clause 5 of this Schedule A following termination of Agreement; or

    (b) any competent authority finds that the terms of this clause 5 of this Schedule A are unenforceable or invalid

    then any further payments owing under this clause 5.9. shall cease and all previous payments made under the same clause shall be repayable to the Company within thirty calendar days from the qualifying repayment event.
    --------------------------
    Also "Restricted Period" is defined in the beginning of "Restrictive Covenants" section as:

    --------------------------
    5 RESTRICTIVE COVENANTS

    5.1. For the purposes of this clause 5, the following words have the following meanings:
    ...
    (f) "Restricted Period" means the period of 6 months immediately following the Termination Date.

    --------------------------

    The agreement does not say anywhere that there is a discretion in the payments to be made unless beginning of the Schedule A (which section 5 RESTRICTIVE COVENANTS is part of) imply the opposite:
    ------------------------------------------------------
    Schedule A

    This Schedule forms part of the Employee's terms and conditions of employment. The definitions used in the Employee's Employment Agreement apply to this schedule unless otherwise stated. Clauses 2,3,4 and 5 of this Schedule A impose certain restrictions on the employee's future-working activities at the time after he leaves the Company's employment.

    1. Severability and automatic amendments
    The Employee agrees that if any restriction in any one or more of clauses 2, 3, 4 or 5 of this
    Schedule A, either by itself or read as a whole, is adjudged to be unenforceable as exceeding
    what is considered reasonable for the protection of the Company’s business interests, but would
    be valid if some part of it were deleted or amended, or if the period or area thereof were reduced,
    then such restrictions shall apply with such modifications to the clause(s) as may be necessary to
    make it them valid or effective.
    -------------------------------------------------------

    Any help will be greatly appreciated, Thanks
    Tags: None

  • #2
    Re: Restrictive covenants, resignation

    sorry wrong forum, reposting to employment forum right now

    Comment

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