Its all about the details. A company making generic spoons saying you can’t make spoons for a competitor probably not enforceable. But a small bespoke engineering firm with the same customers making the same highly technical specialist spoons. Probably enforceable as you could be dealing with sensitive information that you could pass on to your new employer and thus efect the old company business.
This is where gardening leave is used. So any information you have is not worth anything to the competitor.
I AM NOT A SOLICITOR. Just whats happened to me. (3 months gardening leave over summer).
Whether it be 3 months, 3 weeks or 3 days, the OP is going to be using his skillz in direct competition to his existing employer at some point. Reading between the lines , I’m assuming the the existing company has lost the contract to the new one and the OP’s knowledge is going to help the new company run the new contract ?
Reading between too many lines I’m afraid, I have explicitly asked not to manage or have anything to do with that account. What’s interesting is due to my hard work earlier this year my customer base are all in long term contracts so regardless of my relationship of knowledge I cannot do anything anyway!
Did this not come up at the interview/offer stage? Surely you would have mentioned it?
I think I would be speaking to my new boss/HR - they will be able to give you an idea of what you will be doing in the first three months, and you can make a judgement about whether it would be worth your old firm going after you for it.
Best case, they could give you a slow ramp-up to avoid any conflicts, or agree to pay any fines you might incur. Worst case, they could just say it's your problem (not theirs), but at least you would have demonstrated how conscientious you were - and they would have told you something about themselves too.
I have (what amount to) industry-wide anti-compete clauses in my contract - I always have. And I've always just ignored them - as others have said, they are too broad to be enforceable. This thread has been useful though - I will look out anything with anything more specific in future contracts and insist on gardening leave instead.
Did this not come up at the interview/offer stage? Surely you would have mentioned it?
Absolutely it did! We discussed at length, but without understanding how my current employers would react it’s difficult for them to support. It maybe we agree a golden hello type agreement....who knows! Anyway I have a call today to discuss with current employers so hopefully I will have clarity after.
Late to the party but the advice given to me in a similar situation by a (very qualified) HR Director friend was that you can sign away rights to work in certain industries / with certain companies, etc. but in return you should be compensated accordingly for the restraints that places on you earning in future. So if they want you to never work in the industry again, then they need to pay you for that agreement, and the loss of earnings potential that creates. Simply earning a salary while you were working with them isn't considered enough compensation.
Equally - if for example the agreement was for a week, then it could easily be considered that you are not being unfairly penalised in that situation.
In between, like your 3 months - possibly.
Speak to a specialist.
You need legal advice and facts not opinions.
However might I also suggest the moral side. You signed a deal. Stick to it. As much as for your own self esteem as to the fact that your new employers will see that you have standards.
Wow hang on, I want to leave with my head held high and do right by my current employer. I hope that has come across in my posting. I can’t however just walk away and earn nothing for 3 months. I will take advice and I will follow that advice, just wanted some comfort and any real life examples of people whom have had this situation before. That said I believe the clause to be unfair and unreasonable, gardening leave and a differed start date being the fair outcome. We will see how this pans out today.
So I should probably update this thread in case others face the same situation. I am now 4 months into my new job. I basically decided to take a few weeks off but still ignore the anti competitor clause in my contract. My new employers were aware and agreed I would not be directly customer facing during my contacted period. I will say my previou employers were petulant through the whole process. Making me wait in to collect cars. Sending me crappy letters throughout my notice period etc. Made the decision easier to swallow after 11 years of employment etc. Also making it much easier now to start taking business from them. I will say the whole experience is/was very stressful, but I made the correct call. Another colleague (same company different job) left for another competitor the same time but stupidly updated his LinkedIn.... which caused legal action etc. So I was right to be carful of the clause
Good to hear it, glad it all turned out well!
Tells you all you need to know about your now previous employer....
Ianal but can you start with your new employer and work on new clients or existing ones for your new employer, staying away from your old contacts or clients for 3 months?
No I couldn’t by the terms of my old contract, or my new one to be fair. My new employer being specifically named was the biggest sticking point. Even though I was starting in a different sector of the market. I pushed my luck as it was, but fortunately kept my head down ultimately.
