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MatthewM1117
MatthewM1117,
Category: Law
Satisfied Customers: 335
Experience:  Expert
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I am soon to terminate my employment to start a new company

Customer Question

I am soon to terminate my employment to start a new company which in effect will be practicing the same business model as the company I am leaving.
JA: Have you discussed the termination with a manager or HR? Or with a lawyer?
Customer: Not yet, it’s had to be confidential until now
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: employee
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: i will be starting a new ltd company and want to know if the company can act in its own right, thus negating my old employment contract which states I cannot contact existing customers of the business I am currently employed with
Submitted: 14 days ago.
Category: Law
Expert:  MatthewM1117 replied 14 days ago.
Good afternoon thank you for contacting Just Answer my name is***** am a solicitor and I will be assisting you today. Do you have any post restrictive covenants contained in your contract which prevent you from competing with your current employer?
Customer: replied 14 days ago.
Hi Matthew, yes there is one that states I cannot approach existing customers of the company I am currently employed with for 12 months from the date that my employment ends
Customer: replied 14 days ago.
I was hoping that because I was starting a new ltd company that it would ok to act on behalf of that said company?
Expert:  MatthewM1117 replied 14 days ago.
This would depend on the wording of the clause, the post restrictive clauses are usually worded wide enough to include the setting up of a new limited company.
Customer: replied 14 days ago.
The wording is exactly this:
You will not for a period of 12 months following termination of your employment for any reason endeavour to solicit directly or indirectly for orders with any person, firm or company who during the period of 12 months before your employment terminated have been a customer of this company.
Customer: replied 14 days ago.
There’s nothing written about a new ltd company
Expert:  MatthewM1117 replied 14 days ago.
Thank you for the confirmation, the clause is drafted to include any indirect competition this would cover the creation of a new limited company.
Customer: replied 14 days ago.
Could I work for another company in the same field?
Expert:  MatthewM1117 replied 14 days ago.
Is there a non compete clause which prevents you from working with a competing business?
Customer: replied 14 days ago.
No there’s nothing on that
Expert:  MatthewM1117 replied 14 days ago.
Then you would be able to work for another company in a similar field.
Expert:  MatthewM1117 replied 14 days ago.
Hopefully I have answered your question but if anything remains unclear please do not hesitate to contact me further.
Customer: replied 14 days ago.
Thank you, ***** ***** that I need to think of a different way to move forward, a plan rethink!
Thanks for your time
Expert:  MatthewM1117 replied 14 days ago.
Glad to be off assistance we wish you all the best going forwards.