Non compete clause

[shep1001]

Is it reasonable/lawful to apply a non-compete clause if you are made or opt for redundancy? I have been offered a new contract that has a better annual performance bonus baseline (25% rather than 15% of salary) but told it will come with a non compete clause of 6 months on top of my 6 months notice period. I am not likely to be going anywhere after 25 years in without being pushed out the door with a big a big lump of redundancy, so I am reasonably comfortable with a NC clause if I choose to leave (I would rather it was not there but hey ho) however, applying it should I be made redundant seems wrong.

Shep

[anothernameitist]

More than likely enforcable, you need to read the whole document and look for unfair terms

[andy-xr]

I've negotiated out of these and in one case had a call between me, the old company and the new company to iron out what's decent and fair for everyone. YMMV and I'm sure the standard response is to speak to someone who's insured to give advice

[Jasandjules]

So in essence this would be a 12 mth NC clause?

[shep1001]

Jasandjules said:

So in essence this would be a 12 mth NC clause?

Depends how you look at it. I have a 6 month notice period that I would spend on Garden leave with full pay & benefits if I were to indicate I was going to a competitor or refuse to say where I was going - which is what I have now in my contract. I would be allowed to work the 6 months notice if it was clear I was moving outside the industry.
The 6 months NC would follow when 'your employment ends' should I wish to go to a competitor is the bit they are throwing in to the new contract which is a 'core' clause on this particular sites contract.

I get to keep all my other T&C's which are the same, the only thing that varies is the notice period which is dependant on your job grade & how much sh*t it would cause if you left and/or went to a competitor.

[elanfan]

If you don't have an NC clause in your current contract it seems daft to give that up for potential extra bonus (that you might not get). Whilst 6 months of garden ending leave might be nice a further 6 months of not earning would not make the additional bonus worthwhile.

[shep1001]

elanfan said:

If you don't have an NC clause in your current contract it seems daft to give that up for potential extra bonus (that you might not get). Whilst 6 months of garden ending leave might be nice a further 6 months of not earning would not make the additional bonus worthwhile.

Problem is the bonus always pays, not once in 25 years has it paid less than 90% of the target for an individual's grade who is 'achieving' often over 100%. Essentially if you don't achieve your bonus you are not doing your job & on your way out of the door if you don't sort your st out

[anonymous-user]

A non competition clause could be enforceable even after a redundancy, but the redundancy might have an impact on the court's discretion to refuse an injunction to enforce the clause, if, for example, there appeared tp be no continuing competitive overlap between the old job and the new.

A combined period of six months garden leave and six months post termination restriction would in many cases be reasonable, but all would depend on the particular business context and the words of the clause.