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Remus2004
Remus2004, Barrister
Category: Property Law
Satisfied Customers: 2437
Experience:  Over 5 years in practice.
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Restrictive covenants

Customer Question

restrictive covenants
Submitted: 6 months ago.
Category: Property Law
Expert:  chatham-chamber replied 6 months ago.
Hi,What exactly is your question?
Customer: replied 6 months ago.
HiI have received an employment contract through and I am concerned about the restrictive covenants in place:20. POST-TERMINATION RESTRICTIONS
20.1 In order to protect the Confidential Information, trade secrets and business connections of the Company and each Group Company to which he has access as a result of the Appointment, the Employee covenants with the Company (for itself and as trustee and agent for each Group Company that he shall not:
(a) for 12 months after Termination, solicit or endeavour to entice away from the Company or any Group Company the business or custom of a Restricted Client with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business; or
(b) for 12 months after Termination in the course of any business concern which is in competition with any Restricted Business, offer to employ or engage or otherwise endeavour to entice away from the Company or any Group Company any Restricted Person; or
(c) for 12 months after Termination in the course of any business concern which is in competition with any Restricted Business, employ or engage or otherwise facilitate the employment or engagement of any Restricted Person, whether or not such person would be in breach of contract as a result of such employment or engagement; or
(d) for 6 months after Termination, be involved in any Capacity with any business concern which is (or intends to be) in competition with any Restricted Business; or
(e) for 12 months after Termination, be involved with the provision of goods or services to (or otherwise have any business dealings with) any Restricted Customer in the course of any business concern which is in competition with any Restricted Business; or
(f) at any time after Termination, represent himself as connected with the Company or any Group Company in any Capacity, other than as a former employee, or use any registered business names or trading names associated with the Company or any Group Company.20.2 None of the restrictions in clause 20.1 shall prevent the Employee from:
(a) holding an investment by way of shares or other securities of not more than 5% of the total issued share capital of any company, whether or not it is listed or dealt in on a recognised stock exchange
(b) being engaged or concerned in any business concern insofar as the Employee's duties or work shall relate solely to geographical areas where the business concern is not in competition with any Restricted Business; or
(c) being engaged or concerned in any business concern, provided that the business concern is not in direct competition with any Restricted Business or the Employee's duties or work shall relate solely to services or activities of a kind with which the Employee was not concerned to a material extent in the 12 months before Termination.
20.3 The restrictions imposed on the Employee by this clause 20 apply to him acting:
(a) directly or indirectly; and
(b) on his own behalf or on behalf of, or in conjunction with, any firm, company or person.
20.4 The periods for which the restrictions in clause 20.1 apply shall be reduced by any period that the Employee spends on Garden Leave immediately before Termination.
20.5 If the Employee receives an offer to be involved in a business concern in any Capacity during the Appointment, or before the expiry of the last of the covenants in this clause 20, the Employee shall give the person making the offer a copy of this clause 20 and shall tell the Company the identity of that person as soon as possible after accepting the offer.
20.6 The Company and the Employee entered into the restrictions in this Clause 20 having been separately legally advised.
20.7 Each of the restrictions in this clause 20 is intended to be separate and severable. If any of the restrictions shall be held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.
20.8 If the Employee's employment is transferred to any firm, company, person or entity other than a Group Company (the "New Employer") pursuant to the Transfer of Undertakings (Protection of Employment) Regulations 2006, the Employee will, if required, enter into an agreement with the New Employer containing post-termination restrictions corresponding to those restrictions in this clause 21, protecting the confidential information, trade secrets and business connections of the New Employer.
20.9 The Employee will, at the request and expense of the Company, enter into a separate agreement with any Group Company in which he agrees to be bound by restrictions corresponding to those restrictions in this clause 20 (or such of those restrictions as the Company deems appropriate) in relation to that Group Company.My question is how enforceable are these? If i wanted to leave and work for another Toy company (I work in the toy industry) could i ?
Thanks
Dan

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