Hi there

I've got a bit of a tricky situation.I work in IT sales and I've got
an interview lined up with a competing company and about a year ago a
signed a new notice period and confidentiality agreement as part of a
pay rise I was offered. Being young, I didn't think it through perhaps
as well as I should have, but i want to know where I stand before I
have this interview.

Although the interview is with a competitor there are only 3 companies
in the UK that deal with the products that we sell, so there is a
limited job availability within the industry in the UK.

The contract that I signed states in a clause that:
"I will not, for a period of three months after the date of
termination of my employment directly or indirectly:
      Be engaged or interested, whether as a shareholder, directore,
employee..... in any of the bodies or business notified to me from
time to time during my employment as being (company name)'s most
significant competitors within the UK market"

 The specific area that i deal with makes up only a small fraction
(less than 2%) of the companies revenue.

I am willing to take 3 months out if i need to before I start a new
job, but if i have to wait for 3 months for my notice period, and then
a further three for the clause i don't think a job would be offered to
me.

Can someone advise whether my contract is too restrictive? Is there
anything i can do?

Please help!!!

Thanks

Neil

Neil  posted
>
>The contract that I signed states in a clause that:
>"I will not, for a period of three months after the date of
>termination of my employment directly or indirectly:
>      Be engaged or interested, whether as a shareholder, directore,
>employee..... in any of the bodies or business notified to me from
>time to time during my employment as being (company name)'s most
>significant competitors within the UK market"

Well, is the company who is going to interview you named on this list? 
If it isn't,  there's no problem. If it is, read on.

> The specific area that i deal with makes up only a small fraction
>(less than 2%) of the companies revenue.

I don't think that is relevant.

>I am willing to take 3 months out if i need to before I start a new
>job, but if i have to wait for 3 months for my notice period, and then
>a further three for the clause i don't think a job would be offered to
>me.
>
>Can someone advise whether my contract is too restrictive?

The contract is almost certainly unenforceable. Everybody knows that 
people very often move from one company to a competing company - this 
particularly applies to sales people.  It is unfair for an employer to 
use his superior bargaining position to impose this condition.

The worst that could happen to you would be that your current employer 
would sue you when they find out you have gone to work for a competitor. 
But to recover damages, they would have to prove what loss they have 
suffered. I cannot see how they have lost anything at all.

Courts *have* occasionally found for employers in litigation over this 
sort of clause, but it is rare, mostly being limited to very senior 
employees or directors who start up rival businesses having stolen 
client lists from their previous employers. It would be very unusual for 
a junior salesperson like yourself to be successfully sued.

-- 
Les

"Big Les Wade"  wrote in message 
news:m0ru7xCd0l7IFwUR@obviously.invalid...
> Neil  posted
>>
>>The contract that I signed states in a clause that:
>>"I will not, for a period of three months after the date of
>>termination of my employment directly or indirectly:
>>      Be engaged or interested, whether as a shareholder, directore,
>>employee..... in any of the bodies or business notified to me from
>>time to time during my employment as being (company name)'s most
>>significant competitors within the UK market"
>
> Well, is the company who is going to interview you named on this list? If 
> it isn't,  there's no problem. If it is, read on.
>
>> The specific area that i deal with makes up only a small fraction
>>(less than 2%) of the companies revenue.
>
> I don't think that is relevant.
>
>>I am willing to take 3 months out if i need to before I start a new
>>job, but if i have to wait for 3 months for my notice period, and then
>>a further three for the clause i don't think a job would be offered to
>>me.
>>
>>Can someone advise whether my contract is too restrictive?
>
> The contract is almost certainly unenforceable. Everybody knows that 
> people very often move from one company to a competing company - this 
> particularly applies to sales people.  It is unfair for an employer to use 
> his superior bargaining position to impose this condition.
>
> The worst that could happen to you would be that your current employer 
> would sue you when they find out you have gone to work for a competitor.

No it's not.  The worse that could happen is that they ask the court to stop 
him working for the competitor for the period stated in the contract.

Whilst not wishing to imply that I think the actual restriction is 
enforcable in this case, the remedy above has been applied by the courts 
where they think that the contractual restriction is appropriate.

> But to recover damages, they would have to prove what loss they have 
> suffered. I cannot see how they have lost anything at all.

The company's losses are are not restricted to what they have immediately 
lost by one employee moving.  They also include the losses that they might 
suffer if other employes are informed that this clause in the contract, 
which whilst legally enforcable, carries no penalty for breach.

tim

Les,

> Well, is the company who is going to interview you named on this list?
> If it isn't,  there's no problem. If it is, read on.

The company has not at any time provided me with a list of companies
identified as the significant competitors - does that help?

Thanks

Neil

> Well, is the company who is going to interview you named on this list?
> If it isn't, there's no problem. If it is, read on.

The company has not at any time provided me with a list of companies
identified as the significant competitors - does that help?


If you have not been provided with a list then there is little the company 
can do.

Peter Crosland

Thanks for all the responses. I'll go to the interview and see if I
get.

Will keep you all posted!!!

Thanks again

Neil