Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.
Do you have the wording of the restriction please?
I will then be able to look at it later this eve thanks
Hi there, Post-termination restrictive covenants are a rather common occurrence in employment relationships. An employer would want to protect their business from a departing employee's knowledge, business connections, influence over remaining staff, etc. However, a covenant that restricts an employee's post-termination activities will be automatically unenforceable for being in restraint of trade, unless the employer can show that it was there to protect a legitimate business interest and did so in a reasonable way.
Legitimate business interests (LBIs) are commonly accepted to include:• Goodwill (including supplier and customer connections)• Trade secrets and confidential information• Stability of the workforce
An employer cannot apply a restrictive covenant just to stop someone competing with their business, but it can seek to stop that person using or damaging their LBIs by using a reasonably drafted covenant.
Non-competition covenants prevent an employee from working with a competing business or setting up to work in competition with their ex-employer. Such general restrictions are seen as a restraint of trade and will be difficult to enforce. They will only be seen as reasonable if in the process of working in competition, the employee uses trade secrets or sensitive confidential information belonging to their ex-employer, or their influence over clients is so great that such a restriction is necessary. The length of the restriction and its geographical coverage will also be relevant.
This is your basic legal position. I have more detailed advice for you in terms of the options the employer has if they think you have breached the restriction, 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, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you
Hi there, restrictive covenants is the umbrella term for non-solicitation, non-dealing and non-competition covenants - these are all types of restrictive covenant.
If no geographical location is given then that makes it a kind of universal restriction so could make it more difficult to enforce, but generally only if they try and enforce it very widely, for example if you set up a business further away from their usual business area. If you are very close to them and clearly encroaching on LBIs then a geographically non-specific restriction can still apply.
As to the other questions, they do try and limit the type of customers you should not have contact with as they state: Tender for, canvas, solicit or endeavour to entice away from the Company the business of any Supplier of the Company. This restriction is limited to activities of the Employee in competition with services they provided during the Employment. - so they are limiting it to people you have dealt with and whilst not limiting it to n exact period of time, they are still not simply covering all of their clients
The restrictions are not really a non-dealing covenant they are non-solicitation and non-competition ones.
You have to remember that the only way to actually prevent you from working for a competitor is to take you o court and convince the court that the restrictions were reasonable and should be enforceable. This very rarely happens unless there are stakes are clearly high and the employer has a lot to lose by not enforcing the restrictions. As the law on such restrictions is so wide and each situation depends on its own circumstances it is very difficult to say with any degree of certainty how enforceable a restriction would be in each case and only the courts can decide that. I would say that in the circumstances a blanket restriction from working with a competitor is unlikely to be valid but if they state that you cannot do particular work with them if it will directly affect their customers or poach their specific clients you worked with, then those could be more enforceable, but again only if they go to court and get a court decision in their favour
you are welcome, all the best