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michael holly
michael holly, Solicitor
Category: Employment Law
Satisfied Customers: 6933
Experience:  Over 20 years experience of dealing with employment law matters and qualified mediator
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I am leaving my current position now and have a few questions: 1.

Resolved Question:

I am leaving my current position now and have a few questions:
1. DO i need to divulge information about where I am going?
2. My current employer is throwing around "Restrictive covenants" jargon but I am fully aware of this. I have not joined a competitor.
3. How can one distinguish what is a competitor? One is a retailer, one is a manufacturer in the same industry or sector? This is not a competitor
Submitted: 3 years ago.
Category: Employment Law
Expert:  michael holly replied 3 years ago.
Hi, there is no duty to tell your employer where you are going although they may find out anyway if, say, a reference is asked for.
A competitor would be a firm competing for the same type of business in the same activity. On the face of it a retailor and a manufacturer would not be competitors unless the manufacturer also sells direct to the same customers that the retailor sells to.
For a restrictive covenant to work you must have given separate consideration for it, usually £1, so check your contract for this.
Also there is nothing wrong with going to a competitor anyway. What the law is designed to protect is the property of your current employer which would include their list of customers. Even with a valid restrictive covenant provided you do not start ringing up customers of your old employer trying to entice them away then your old employer has not suffered any loss and there is nothing that they can do to you.
I hope this helps. If there are any further points please reply
Best wishes
michael holly and other Employment Law Specialists are ready to help you
Customer: replied 3 years ago.
Thank you very much for the concise answer.
I. Would like to clarify what this text here means as I do not understand?
"For a restrictive covenant to work you must have given separate consideration for it, usually £1, so check your contract for this."
Looking forward to your response,
Expert:  michael holly replied 3 years ago.
There was a case that decided a restrictive covenant in a contract was not effective as the employee had not received any consideration (money) in return for agreeing the covenant. As a result restrictive covenant clauses must have some consideration in them, as I stated it is usually £1.
However most of these cases rely on the employee taking the property of the previous employer, the customer list, and using it. In those circumstances a restrictive covenant is not needed anyway. The old employer can get an injunction against you and the new employer and sue you both for the value of the custom lost.
If customers of the old employer want to move with the employee the sensible thing to do is get a letter from them saying that the employee did not solicit them or offer any inducements but the customer simply prefers dealing with them.
Best wishes
Customer: replied 3 years ago.

Ok perfect.

So as there is no offer of "£1" or the like this could possibly void it. Does the fact they are offering a salary cover this or it needs to be separate?