Employment Lawyers Can Answer Your Employment Law Questions
Hello my name is XXXXX XXXXX I am happy to help you today. Is your employer likely to suffer any financial loss, by losing clients or contracts, if you do move to the competitor?
hi, no they wont loose clients
they will just move the accounts i handle to a differenet recruiter or account manager
they are not a direct competitor , small recruitment firm, not as large as the one i work for now
Ok I do not think you need to worry then. The basic position is that restrictive covenants are enforceable if they are drafted in a way in which they protect a legitmate business interest. If you go to a competitor, in breach of the covenants and the employer suffers a financial loss then the employer may chose to sue you for damages in breach of contract.
They would only do so if they were going to suffer a significant financial loss. The reason for this is that it costs tens of thousands of pounds to bring proceedings of this nature.
If there is no risk to them then they will not sue you.
So if there is not risk or financial loss then its not illegal to move to a competitor? and they cant sue me?
No it's not illegal for you to move. You are free to work wherever you like. The issue will be whether you are in breach of your contract by moving and whether you can be sued for damages. You cannot be sued for damages if there is no loss. On the basis of what you say the employer will not take action against you.
thank you so much!
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All the best in your new role.
thanks i will