My work contract states that for one year after I leave my employer I cannot work for a customer – does anyone know if this can be enforced and if so what the consequences are?

I've got a money spinning idea and involves working short term for a customer to help them.

These are called restrictive covenants, otherwise known as non-compete clauses.

Usually they are used to prevent one working for competitors or poaching staff, cusotmers or suppliers.

Think of it as a means of protecting your soon-to-be ex-employer's (STBEE) goodwill. Since goodwill is the real value of any busijness, it is considered right that it is protected. But, it is against public policy that all trade and employmenrt is unreasonably restricted.

The extent to which they are enforceable depends on several factors, including the way they are drafted, and also the context they are used in. If yours is an industry where 12 months of non-competion is reasonable, then it is enforceable. If, however, it is quite normal practice to leave one place and work for a customer/competitor/etc straight away, then it is less likely to be enforceable.

There are two ways they can be enforced, and both require your STBEE to go to court. The first is for you STBEE to claim that is has suffered loss as a direct result of your breach of contract, in which case you could be liable to pay damages to your STBEE. The other alternative is for your STBEE to seek injunctive relief, which may prevent you from continuing to work for the customer for the remaining period of the covenant.

The likelihood of enforcement depends on whether you are going to cause a material loss to your STBEE or you are otherwise sufficiently important that it would be considered pretty detrimental that you work for the customer.

Does it matter if I am being made redundant?

I know a lot of colleagues have gone to work for competitors looking after similar clients etc.

I'm not intending to cause a material loss but I would look to advise them on how to get the best for their business. A few of these items may put my STBEE out of pocket as there are process improvements which would change certain revenue streams.

If being made redundant, you need to be careful. There are inherit provisions in your redundancy that mean you are required to mitigate your loss (mind you, so is your STBEE).

Frankly, it would seem a bit rich to make someone redundant and then try to stick the boot in once they have gone.

when you say… "inherit provisions in your redundancy that mean you are required to mitigate your loss"

What does that mean? I've not been made officially redundant yet so not signed anything

Does it matter if I am being made redundant?

It would make for an interesting discussion at the job centre when signing on.

Bushwacked – Premier Member
when you say… "inherit provisions in your redundancy that mean you are required to mitigate your loss"

I think he means that both parties have to try and minimise any losses after a breach of contract (ie you working for STBEE's customer), not really sure how that applies here though, it's more about say a tenant leaving a lease early and the landlord having a duty to find another tenant rather than charging the leaver for the rest of the lease. But I am sure OMITN knows more than me as IIRC corporate law is his thing.

Sorry. Mistyped. I meant "inherent".

When there is a breach of contract, you can claim for your losses. The measure of damages is the loss of "bargain". But, as a principle of contract law, you cannot just say the breach has cost me £X so pay up £X". You are obliged to mitigate your loss – by say finding a repalcemrnt contract.

In the emplyment context, the same applies. There is a theoretical argument that, in accepting a redundancy payment (especially an enhanced one above the statutory minimum) and walking straight into a new job is not a mitigation of your loss. I'd argue against this – it's just the fortunes or war whether you find emplyment straiught off or not. I just wouldn't want your STBEE to argue that, because ytou had something lined up, they were going to lay into you to recover some of the monies paid on redundancy.

I think I will have to play it quite cool…

When I was made redundant, my solicitor said that the covenants were unenforcable where the non-compete and non-working with customers was concerned because of some blah blah blah (my brain switched off). I assume as part of your redundancy you have a bit of cash to consult with your solicitor (or one experienced in employment law), if so, get him/her to advise you.

If the restrictions lead to you being unable to work at WHAT YOU DO then they cannot be enforced. I had exactly this situation so I chose to gouge my emplyer for another 25k in my redundancy so I wouldn't go and work for their main competitor.

Good luck with you interview BTW!

Raised it with my boss – he checked with the HR muppet and he's been told that once I am released I can go whereever I want.

Issue I've got now is a job has come up at my present employers that I am tempted to apply for – anyone know how this affects my pay out? I've been told that if I don't get it / apply for it my payment isn't affected but if I do – will I lose it?

Cheers Joolsburger – well nervous so if you have any tips let me know – why is it a job you want / are suited for comes up first before any interviews you don't want where you can practice your interview technique!!!

Treat it like a sales meeting.

Just be yourself, sounds corny but is the best way.

Ask for feedback before you leave and make sure you have all your numbers for the last few years to hand and in your head. When I interview sales people I expect sharp people who know exactly what they earned, how they earned it and who they earned it with. Wolliness is not a good trait!!

Dont be afraid to restate the question to be clear you have understood what is asked, nothing worse than going off on a tangent and check you have answered to their satisfaction if you aren't sure you have.

Most of all know them and a bit about their business (no one expects you to be an expert) and be enthusiastic.

I can train Knowledge, I can train and develop skills I can't do anything with someone who's attitude stinks.

Also do not go into detail about you redundancy simply state that there has been a restructure and despite good performance you have been let go as your client is no longer driving revenues it's just one of those things and that you have had a number of options presented but this is the first opportunity that has really excited you etc.

It's a bit off putting if someone gives their employer a slating! Make sure you have good refs and be happy to give them.

Focus on what you can do well and be prepared to answer on your areas of weakness too. Most of all ask if they have any further questions or anything they are unsure about before you leave as you wont get another chance to address them if they have. It will also give you a good indicator as to if you've done OK, they may well want to set up the second interview there and then for instance.

Hope that helps.

Top advice!

Explaining the redundancy is one I've been struggling with but like what you say above

If you got the other job at your current place then they wouldn't normally pay out redundancy.

If you apply and don't get it then they would still have to pay redundancy.

well nervous so if you have any tips let me know

As mentioned, play it cool & confident

They may well want to know more about it so show your numbers which demonstrate that all was rosy till the recession and then it went tits up no-ones fault it's just business.

Bushwacked

I may be reading too much into you email and also your previous posts on redundancy. Contract restictions are difficult to enforce and from what you have said it wouldn't get very far if your employer has previoulsy allowed staff who have left to work for customers.

But I would suggest caution if the new venture you want to work on is to help a customer re-negotiate their current contract with your employer then you could be in danger of breaching confidentiality (which can be implied as well as covered by a written agreement). Be careful if you will be using information, that is money related or refers to specific terms and conditions, that comes as a direct result of working for your current employer. It might be less contentious if you were to help them move to another supplier and ensure that they got a better deal.

Just spoken to one of my senior directors who originally employed me (mainly to ask him to recommend me on Linkedin – which he jumped at doing) and he said he doesn't understand why I am going and that the whole thing has been handled badly.

Tyke – point well made and something I am very conscious of.

My aim is to provide the kind of support which would be independant of supplier but help to provide the level of support they would only get from a supplier. Help to get some key projects moving which have stalled due to lack of knowledge in the subject matter.