Competition Clause
Author
Discussion

Fidgits

Original Poster:

17,202 posts

260 months

Monday 5th January 2009
quotequote all
Okay, i have a non-compete clause in my contract which I am paraphrasing below:

contract said:
a. Employee agrees not to compete for one month after employment terminates etc..
Fair enough, quite normal

contract said:
b. Employee agrees for 2 years not to solicit or hire anyone employed at the company at the same time..

this has a nasty section c. saying that a breach would mean the employee would have to pay 6 months gross salary to them!
So, my first question is - my boss has recently left for another (sort of) competitor - and they have a job opening for my job as well, working for him..

If he wasn't involved in my application or interview - would the section b still apply?


And should i worry about section c - though it doesnt effect me directly, could this cause problems if i went to the new company - or is it likely this is unenforceable?

JustinP1

13,364 posts

261 months

Monday 5th January 2009
quotequote all
The only terms you are party to are the ones in your contract.

Therefore section c must refer to your bosses wages, and not yours.

In any case, would they find out, *and* would they be bothered even if they did, *and* even then would they have the balls to take action, *and* even then would it be enforcable?

To that I would say unlikely. In any case, it would be your old bosses decision on whether to take the risk as it is his contract which he is party to.

Fidgits

Original Poster:

17,202 posts

260 months

Monday 5th January 2009
quotequote all
thanks Justin...

thats helpful.

As for them finding out - i wouldnt know how to approach the issue of leaving without telling them? Any advice on how to go about that?

therealpigdog

2,592 posts

228 months

Monday 5th January 2009
quotequote all
agree with Justin - it's all on your old boss - nothing to do with you as long as you have a month off.

they more than likely would find out due to HR departments always chasing references (even though your old boss can provide). my suspicion is that thy would try to enforce the 6 month salary clause simply because money is tight at the moment in all industries - that said, some sort of settlement could probably be reached between new and old employers.

JustinP1

13,364 posts

261 months

Monday 5th January 2009
quotequote all
Fidgits said:
thanks Justin...

thats helpful.

As for them finding out - i wouldnt know how to approach the issue of leaving without telling them? Any advice on how to go about that?
Just hand in your resignation - you don't need to tell them where you are going! smile

Then just be a bit cagey on what you are doing. Time off? Travelling?