Hi there I was employed full time and during my course of employment I have opened a company as XYZ and it didn't traded during the course of my employment . now I have resigned and wanted to start doing the business of the same trade of my ex employer and I just started and my ex employer came to know about this company and they are suspicious that my company was trading whilst I was employed and they called me to ask about this company and I said it did not traded and I sent them the scan copy of bank statements of the company accounts and since then I did not heard from them . if I want to run the same company and the business what implications I can have , please advice
no there was no restriction in the contract about opening a company
do you have time as I need to explain the scenario of what has happened
I was working for a company for more than 10 years and the company trade is to provide temporary accommodation to local authorities . In March I resigned from the company and in april I received resignation acceptance letter whilst I was employed I opened a company about a year ago but I did not traded soon after I left the job I started to run this company .my ex employed came to know that I was having a company and they were suspicious that it was trading whilst I was employed
they called me to ask about this company weather or not it was trading , in order to keep things simple I scan the bank statements and sent to them in order to clear their doubts
and soon I have resigned from that company and made someone else as the director coz I was thinking maybe they might take any legal action
now can the new director run this company employing me in the same trade as my ex employer of providing accommodation to local authorities
Your legal position would very much depend on what restrictions there were in your contract of employment with this company that you worked for. First of all it is not unlawful to have another business at the same time as being employed by someone,l even if it is a competing one. Often it would be seen as morally wrong but it would not be automatically unlawful. However, the employer can make it a contractual condition that you should not engage in any other business or employment whilst working with them and they could also have post-termination restrictions that limit what you can do once you leave them. You said that there was no contractual restriction on opening a new company so technically you have not done anything wrong and even if you had - the employer would have only been able to do something whilst you were employed by them but now that you have left, there is little that they can do, especially as their business has not been affected by this.
What did the clause specifically deal with, and also when did it apply - during or after employment?
what information do you actually have that may be covered by this?
the confidentiality clause itself will not automatically stop you from doing that but it obviously depends on what information you would be using in the process, so if you had any specific confidential information from that employer and you used it in the new business they could challenge it but if you are not using such information then it is unlikely they can do anything
not unless hey ere confidential to tat business, but if they are freely available and publicly known in the industry then you can use them
no these are unlikely to be covered
yes correct and you are welcome