Can anyone review restrictive covenants for me, please?

[schmalex]

Hi folks,

Would someone of a lawyerly persuasion be able to quickly review some proposed restrictive covenants on a new (internal promotion) contract for me?

Any help would be most gratefully received!

[Ninja59]

What sort of term are we talking? Non competition is the usual one I have seen....

[schmalex]

Ninja59 said:

What sort of term are we talking? Non competition is the usual one I have seen....

12 months, but there are quite a few different restrictions. Would you mind if I PM'd you a copy for you to have a quick look at? I just want to understand if they are fair and reasonable for a relatively closed industry.

[AyBee]

If it matters to you, pay for a legally insured review!

[Truffles]

We have been advised that 12 months is pushing it - 6 months is more likely to be enforceable. But it is trade specific and depends on what the restriction is.

If it looks problematic to you, paying for advice is the route to go.

[Ninja59]

schmalex said:

12 months, but there are quite a few different restrictions. Would you mind if I PM'd you a copy for you to have a quick look at? I just want to understand if they are fair and reasonable for a relatively closed industry.

All non comp clauses are presumed to be void unless they are there to protect legitimate business interests and are "reasonable". As said many have seen 12 months as excessive, geography can also prove a factor as some were very silly, for example the whole of the UK. Additionally, the exact level of restriction on particular industry can prove stumbling blocks for such terms, the fact it is a "closed" industry can cause further problems. I have heard of more been found void than enforceable though....

You are welcome to send it over (I have done my LPC and did cover employment law), but never qualified. If you are really concerned by it though I do suggest seeking professional paid advice.

[bladebloke]

Truffles said:

We have been advised that 12 months is pushing it - 6 months is more likely to be enforceable. But it is trade specific and depends on what the restriction is.

If it looks problematic to you, paying for advice is the route to go.

Re the first part - there is no blanket rule - it completely depends on the circumstances.

Re the second part - this. Absolutely this. If you're intending to breach the covenants on the basis of a view as to whether or not they're likely to be enforceable then you need proper advice.

[bladebloke]

bladebloke said:

Re the first part - there is no blanket rule - it completely depends on the circumstances.

Re the second part - this. Absolutely this. If you're intending to breach the covenants on the basis of a view as to whether or not they're likely to be enforceable then you need proper advice.

I've just re-read the OP - if its a new contract that you haven't entered yet and you're not happy with the detail of the restrictions, negotiate them!