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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 48189
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Is it legal director of a previous company who was paid

Customer Question

is it legal for a director of a previous company who was paid a sum for their shares to open a new company and tender for the same jobs?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today. Can you please explain exactly what has happened?
Customer: replied 1 year ago.
my former partner was paid £43000 for his shares and resigned as a director from the company, he then set up a new company and is now tendering for the same job
Expert:  Ben Jones replied 1 year ago.
There is nothing illegal in this. Once a person leaves a business, they are generally free to do whatever they want, even if it is in direct competition with the business they used to work for or own. It is a free market and there is nothing unlawful with competition if someone wants to offer the same services in the same area in which they used to work. The only time this may become an issue is if there was a specific post-termination restrictive covenant restricting the person’s activities after they leave that employment. However, even that is not as simple and often such restrictions are too strict to be enforced so there are a number of principles which must be taken into account before their validity is approved. This is your basic legal position. I have more detailed advice for you in terms of the laws on restrictive covenants in case they apply here, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, leaving a rating will not close the question and we can continue this discussion. Thank you
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Expert:  Ben Jones replied 1 year ago.
Thank you, ***** ***** know if there are any post-termination restrictive covenants in place?