Restraint of trade

[mercfunder]

Anybody on here able to give some advice on a restraint of trade clause, getting out of/round it advice is what I am after.
Please let me know so I can possibly pm you.
Many thanks for any assiatance.

[GuinnessMK]

I had one in my contract once. I went to see a solicitor who confirmed to be binding it had to be geographically limited AND time limited.

Mine was 6 months in that industry, so it wouldn't stand up. If they'd said 6 months and not within 100 miles of head office, they may have had a chance.

[clarkey]

I believe it just needs to be specific - for example "can't sell products/services ABC to list of customers XYZ for 12 months" would be binding, but a completion restriction on selling anything to XYZ or ABC to anyone would probably be too restrictive.
My personal opinion is that you signed the contract so whether it is too restrictive or not isn't the point - you were happy to sign it when you joined, a contract should be respected by both parties. Just my opinion though!

Can you afford to gamble on it? If they sue, can you afford to defend it properly? Does the ex-employer have its own legal team and experience of fighting this, or was it just a standard contract they bought in WH Smiths? Do you have a history of resorting to the law quickly and decisively (with customers, for example?).

[Jasper Gilder]

A friend of mine ignored a restraint of trade clause ( whilst still employed) and is in the process of selling his house to cover the legal award so be careful

The law says that no contract can prevent someone from following their profession, and usually direct approaches by you to existing customers, or opening a hairdressers next door to the one you've left aren't acceptable

What is often grey is where customers approach you....

Talk to a lawyer

[mercfunder]

Thanks for the replies, anyone know a good employment lawyer in the south Manchester/Cheshire area?

[Vron]

GuinnessMK said:

I had one in my contract once. I went to see a solicitor who confirmed to be binding it had to be geographically limited AND time limited.

Mine was 6 months in that industry, so it wouldn't stand up. If they'd said 6 months and not within 100 miles of head office, they may have had a chance.

Thats interesting as my contract states I can't work for any competitor to my company (it uses the term company to mean the 'entire company' not just the division I work for so that covers a massive section of the industry) but has no time restriction or geographical restriction? They also actively recruit from direct competitors - so whats good for the goose.....

[siscar]

The important part is that to be enforceable it needs to be reasonable and necessary to protect a legitimate business interest. The arguments (and legal bills) start in defining what that means in a specific case.