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Hello, my name is ***** ***** it is my pleasure to assist you with your question today. How will your company be affected if you were to break this agreement?
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. can you tell me how long you have been employed here and when did you sign this clause please.
I've been with the company since July 2012 and were I to leave they'd be substantially affected by a loss of knowledge and my relationship with my existing corporate accounts. I manage the largest spending clients that we have in the South
Hello did you get my reply please.
Signed the clause last month... but I'm desperate to get out. I have a competitor lined up to take me on in an amazing role but they want to see this statement retracted before they'd offer me formally.
Whilst the starting point is that such an agreement would be legally binding, that does not mean the employer can try and enforce it in any event and regardless of what you do. Such an agreement would be a binding contract so if you were to go ahead and breach it, it would amount to a breach of contract on your part. Under law the employer could then consider making a breach of contract claim against you but if they do so all they can pursue you for would be compensation for actual losses which they have incurred as a result of that. So for example if your actions have resulted in some financial losses for them, then they could consider pursuing you for these. If they have not suffered any losses as a result of that breach then there is little they can do to take this matter further. They cannot simply penalise you financially because that would be a penalty clause which is legally unenforceable. It is also unlikely that they will be able to prevent you from joining another company because that would amount to a restraint of trade, which is also unlawful. If by joining the new company you would be infringing the old company’s legitimate business interest, for example using confidential information or trade secrets you obtained from them and used them in the new employment, they could then consider trying to stop you from doing that. However, if you are not going to do this and will simply start a new job which does not directly affect them or their legitimate business interests in any way, then they cannot stop you from working there, even if you had the agreement in place.
Ok thank you leave it with me I need to look up a few things and then get my advice ready.I will post back on here when done there is no need to wait and you will receive an email when I have responded.
Thanks Ben, will await your update. Reading to the bottom of your reply I presume you're going to research some more then come back to me
Hi sorry I posted that by error, the reply is above
Right. So if I left and they suffered as a result they'd be entitled to claim for the loss of earnings, which they almost certainly would as my other offer is from a competitor and my existing employer would lose creditability and my relationship with my clients. I'm not leaving them to do a similar role and I won't be a salesman or an account manager as I am now. I've been offered an overall development role. However, the other companies legal team think my only option is to plead for time off owing to family problems, say I can't work there any more and beg them to rescind the statement I signed to...
You cannot really be forced to continue working for them for a specific period of time. So even if you had a fixed term contract, that can be terminated if you gave them the notice period within it. They cannot just claim for loss of earnings had you continued to work there for a year - they have a duty to reduce any such losses and show they have taken steps to do so, meaning they would need to seek a replacement to do the work and if they have not bothered to do so they are unlikely to be able to claim the full sum they may be after
Aha, thanks Ben, very useful. Anything else you think I need to consider or should do? How am I best advised to break the contract/agreement then? Simply say I want to leave? What if they won't rescind the statement in writing, that seems to be the only thing the new company is insistent on... I'm snookered without same.
Please 'finish' answering so I can rate you and you get the monies paid Ben
Many many thanks
The new company legal team thought the existing could take out an injunction against me if I joined the competitor - no?