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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50517
Experience:  Qualified Employment Solicitor
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Does your employment contract still stand if you have been

This answer was rated:

Does your employment contract still stand if you have been made redundant because the company you were working for has closed down?

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today.

Ben Jones :

What are you trying to enforce under that contract?

Customer:

My contract states that I can not work within my field of work within 6 months of not working for the company

Ben Jones :

Did they terminate your contract as they should have, by paying you redundancy, notice, etc?

Customer:

yes

Ben Jones :

The contract itself would no longer apply and once the employment has terminated so would the contract. However, the restrictions are designed to operate after the termination of the contract - these are post-termination restrictions so even if the remainder of the contract no longer applies, these will continue to apply until their specific period of duration expires, for example 6 months in this case.

Ben Jones :

Saying that, it does not mean that these restriction will be legally enforceable.

Ben Jones :

Often you will find that they are too restrictive and breach the right of free trade and for employees to earn an honest living

Ben Jones :

They will only be valid and enforceable if the employer can show that they are there to protect a legitimate business interest

Customer:

the business is closed

Ben Jones :

For example poaching of staff or clients, using trade secrets, confidential information, etc - all can be protected by such restrictions

Ben Jones :

Simply working for a competitor is unlikely to be a legitimate reason to prevent you from doing so and apply these restrictions

Ben Jones :

Also if the business is closed and no longer exists then there would be no one to challenge you over an attempted breach of these restrictions

Ben Jones :

The contract was between you and the company, if the company no longer exists then they cannot pursue you. The directors can't enforce a contract they were not a party to

Ben Jones :

the company, assuming it was a limited company, would be the party to the contract and that is a separate legal entity to the directors or shareholders

Customer:

ok thank you very much.

Ben Jones :

You are most welcome. Please take a second to leave a positive rating for the advice I have provided as that is an important part of our process. Thank you and all the best

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