Resignation Period and contracts between two companies

Resignation Period and contracts between two companies

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LeonFRTDI

Original Poster:

100 posts

110 months

Monday 30th March 2015
quotequote all
Hi All,

I'm seeking a little advice


I have been offered a job today which I will be willing to accept. The start date is the 1st June which gives me 2 months in my current role and I am only on 1 months notice period.

The company I am going to work for is the company we use for our software, so there is a contract in place with CURRENT employer and NEW employer for our support which states employees of either company can not transfer within 6 months of leaving employment. I must state we are by no means rivals, they purely provide us an engineering company with our ERP software.

So issue I got is my current employer are wanting to exercise the 6 month ruling and my new employer wanting me in two months. The way I understand it is that My contract is between myself and current employer, no mention of going to the ERP company - it's purely a support contract.

So I can leave without any implications to myself and new company?

thanks

Jasandjules

69,889 posts

229 months

Tuesday 31st March 2015
quotequote all
You would need to take proper advice (i.e. someone who looks completely at your contract) but what you say above - is that set out in a "restraint of trade clause" i.e. it specifically states you may not work for that company ?

LeonFRTDI

Original Poster:

100 posts

110 months

Tuesday 31st March 2015
quotequote all
Having just found an 'old' contract it states the following

'Restricted Client' - shall mean any person, firm, company or other entity who.which was at any time during the twelve months preceding the termination date a client or customer of the employer and with whom you had material dealings during that time.

Argument against this - the contract is for my 1st job at said company, I never got a new contract when I moved to my role?

edc

9,235 posts

251 months

Tuesday 31st March 2015
quotequote all
LeonFRTDI said:
Having just found an 'old' contract it states the following

'Restricted Client' - shall mean any person, firm, company or other entity who.which was at any time during the twelve months preceding the termination date a client or customer of the employer and with whom you had material dealings during that time.

Argument against this - the contract is for my 1st job at said company, I never got a new contract when I moved to my role?
The fact that you did not get a new contract when changing roles internally does not invalidate the previous one. After all, what terms do you think you have been working to otherwise? Some different terms which you have never seen or agreed to?

You need somebody to look at the relevant clauses, your work and role and to advise whether you may have had 'material dealings'.

Jasandjules

69,889 posts

229 months

Tuesday 31st March 2015
quotequote all
12 mths is quite wide ranging. That may be their problem. Are you in a senior role? Have you dealt with your new employer extensively?

However the lack of new contract is not really relevant as you still work for the same firm I believe. In any event you would be deemed to have affirmed the contract by continuing to work.

Also has there been any breach of contract by your current employer?

allergictocheese

1,290 posts

113 months

Tuesday 31st March 2015
quotequote all
From what you've posted there is a restriction on working with clients and customers, not suppliers.

LeonFRTDI

Original Poster:

100 posts

110 months

Tuesday 31st March 2015
quotequote all
Yes after a brief conversation with a friend in HR, I came to to that conclusion too - it states clients and the new employer is a supplier - not a client therefore I believe I don't have anything in my contract. With regards to a senior role, no I am not senior in the role I do but I have dealt with new company regularly but only on a support basis (ie them supporting us)


andy-xr

13,204 posts

204 months

Wednesday 1st April 2015
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There'll be a non-poach in the terms of the suppliers contract, you might not know about it because it's not in your employment contract but they tend to get written in.

The thing is, the place you're going to will be wanting to work with your old place as best they can, so it's in no-one's interest to rock the boat that much, save for cutting noses off. There'll probably be a few words exchanged at a high level and it'll all be fine, or you'll all part company and the old place will come off worse. It'd be in their interest to make sure it's a good transition, but sometimes some bosses take it as a personal insult when it's not at all.

clived

577 posts

240 months

Wednesday 1st April 2015
quotequote all
LeonFRTDI said:
Having just found an 'old' contract it states the following

'Restricted Client' - shall mean any person, firm, company or other entity who.which was at any time during the twelve months preceding the termination date a client or customer of the employer and with whom you had material dealings during that time.

Argument against this - the contract is for my 1st job at said company, I never got a new contract when I moved to my role?
Your potential new employer does not appear to be a 'Restricted Client" because they are not and have never been a client or customer of your current employer. So you're in the clear, given what you've posted so far. I would not however bury my head in the sand as if your potential new employer isn't employing you consciously breaching the agreement (and therefore thinks you're worth negotiating over) there could well be trouble that impacts you (i.e. not ending up with any job) in the future...

LeonFRTDI

Original Poster:

100 posts

110 months

Wednesday 8th April 2015
quotequote all
Thanks to all the help, it's now been sorted.

Although I'm on 4 weeks, I let the new company and old company sort it - as they both wanted to keep a good relationship so it's been agreed I leave late June.