legal question

[Daveyh]

Pal left a company few months ago - terms included a 6 month cool off type item - not doing any work for anyone within the firm.
She's has done a few small jobs for the firm via an external agency. How hot is her water if legal found out?

D

[Eric Mc]

Sounds like she's breached her contract - although the contract might be considered too restrictive and therefore unenforceable.

[Daveyh]

Breached, agreed. What action can be taken by Legal division, if they choose to pursue?
A contractor pal of mine reckoned that it very difficult to enforce this sort of thing.

Edited by Daveyh on Thursday 15th May 15:19

[Dupont666]

Rather than breached, would it not depend on what the original job was?

For example a Lawyer could be on gardening leave, but what could stop him from helping out and doing the books for a company for a few months?

Its nothing to do with the reason why they are on gardening leave in the first place.

Or was this one an actual breach of the contract?

[Daveyh]

She won't be billing the ex firm for work. The agency will be. The nature of work is similar.

[JustinP1]

Dupont666 said:

Rather than breached, would it not depend on what the original job was?

For example a Lawyer could be on gardening leave, but what could stop him from helping out and doing the books for a company for a few months?

Its nothing to do with the reason why they are on gardening leave in the first place.

Or was this one an actual breach of the contract?

If you are on gardening leave you are still under contract, and being paid. Therefore you still have to honour your contract terms.

With these issues, a contract is a contract. In a nutshell they have done wrong.

If the restriction is reasonable then it can be enforced and damages sought. However, until recently, firms included clauses which were hopelessly wide and restricive and they have been ruled against.

For example, "You must not work for a UK IT company for 10 years" is one end of unenforcable, and frankly silly.

However, "You must not work for a company you have been specifically contracted out to within six months of being contracted there" is actually pretty reasonable IMHO.