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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50754
Experience:  Qualified Employment Solicitor
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I am going through a redundancy process and it is highly

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I am going through a redundancy process and it is highly likely I will be made redundant. However I have a restrictive covenant in my contract that states in my 3 month notice period that they will pay me, I can't "hold any position as director, officer, employee, consultant, partner, principle or agent in any business that is the same as or competitive with the company (unless you are employed in a part of the business which does not compete and in a role in which you are not required or requested to perform any duties in competition with the company).
My question is whilst I am going through consultation should I raise this and ask for the removal of this clause as it effectively prevents me from getting a job in the same industry until I have been out of work for 3 months which will prevent me from earning money to support my family.
If you think I should raise this, should I send an official letter asking for the clause to be removed in case of redundancy, or should I opt to keep it and use as a negotiating tool to get a bigger redundancy pckage, as far as I am aware they only usually pay statutory redundancy.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

How long have you worked for this employer for?

Customer: replied 10 months ago.
Hi Ben, I have been with them for 3 years 10 months.

OK, thank you for your response. Leave it with me for now and I will review the relevant information and laws and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Also, please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.

Thanks for your patience. Assuming that they issue you with notice of redundancy and then require you to work your notice period or place you on garden leave such a clause is likely to be fair and reasonable because you will continue to be employed by them and paid for that time. Therefore, you are still their employee and they can prevent you from earning money elsewhere when they are paying you for that time.

If they were to pay you in lieu of notice, which means terminating your employment immediately but paying you for the notice period, then such a clause would be less likely to be enforced. It does not give you much negotiating power because if they wanted to they can include it and it is not illegal to do so, but it simply means that if you were to breach it, they will find it difficult to enforce it.

You can of course try and get them to agree to its removal, but cannot force them to. You can try negotiating for an increased redundancy as a result of it staying but again, you cannot really force them to offer you anything on top of that they will already pay. So they can leave both the redundancy pay and the clause in place as they stand now. If that was the case you simply have to take your chances and potentially breach it, knowing that if you are no longer employed by them, such a clause would be difficult to enforce anyway.

I trust this has answered your query. Please take a second to leave a positive rating by selecting 3, 4 or 5 stars above - this is an important part of our process and recognises the time I have spent assisting you. If you still need me to clarify anything else, please reply on here and I will assist as best as I can. Thank you

Ben Jones and 2 other Employment Law Specialists are ready to help you
Customer: replied 10 months ago.
Thanks for your feedback this is useful. I will add a rating now.

Many thanks and all the best