Restricted covenance clause in employment contracts... - DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate

**sbrpkkl** · 09-12-2006, 11:38 PM

Anyone know anything about these?

Basically I am leaving my job as a web designer to start up my own web design firm in January and in my contract there is a restricted covenance clause which prevents me from working with any existing clients for at least a year.

What I want to know is, if a client finds out i am leaving and voluntarily asks me to work for them without me approaching them, is that still in breach of contract?

**shumozar** · 09-12-2006, 11:49 PM

Anyone know anything about these?

Basically I am leaving my job as a web designer to start up my own web design firm in January and in my contract there is a restricted covenance clause which prevents me from working with any existing clients for at least a year.

What I want to know is, if a client finds out i am leaving and voluntarily asks me to work for them without me approaching them, is that still in breach of contract?

Yes, its classed as inside knowledge.

**sbrpkkl** · 09-12-2006, 11:54 PM

Yes, its classed as inside knowledge.

so I need to knock work back? that is going to be very difficult.

**VINPELA** · 09-13-2006, 01:45 AM

It's awkward but yes - you would have to knock the work back.
The questions asked would be how the existing client found you after you'd left your current place of work - just luck that they happen to leave your current place and speak to you?
The clause itself can be difficult to enforce because there is also a "Freedom of employment" rule - basically no company is allowed to stop you earning a living.
Many companies slip bits into their contract about "Not working for another company in the same industry or a rival for a year after leaving".
That's all well and good, however because of the work you do you may find that the only way to get work is to work for a "rival" and in that case they cannot stop you - unless of course they are willing to pay for you to sit around and not work for a year

You would be a lot safer knocking back any such work for the full 12 months - especially if you're good at your job and your old place of employment consider you now a rival.

**shumozar** · 09-13-2006, 02:08 AM

so I need to knock work back? that is going to be very difficult.

There is a way out of it, go to tribunal, and claim that it is damaging to your career as you are classed as a niche worker.

Many companies will fold it out of contract if you go ahead with it, as the law would be on your side.

09-12-2006, 11:38 PM	#1
sbrpkkl Join Date Oct 2005 Posts 490 Senior Member	Restricted covenance clause in employment contracts... Anyone know anything about these? Basically I am leaving my job as a web designer to start up my own web design firm in January and in my contract there is a restricted covenance clause which prevents me from working with any existing clients for at least a year. What I want to know is, if a client finds out i am leaving and voluntarily asks me to work for them without me approaching them, is that still in breach of contract? Share Share this post on Digg Del.icio.us Technorati Twitter
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09-12-2006, 11:49 PM	#2
shumozar Join Date Oct 2005 Posts 524 Senior Member	Anyone know anything about these? Basically I am leaving my job as a web designer to start up my own web design firm in January and in my contract there is a restricted covenance clause which prevents me from working with any existing clients for at least a year. What I want to know is, if a client finds out i am leaving and voluntarily asks me to work for them without me approaching them, is that still in breach of contract? Yes, its classed as inside knowledge. Share Share this post on Digg Del.icio.us Technorati Twitter
	Quote

09-12-2006, 11:54 PM	#3
sbrpkkl Join Date Oct 2005 Posts 490 Senior Member	Yes, its classed as inside knowledge. so I need to knock work back? that is going to be very difficult. Share Share this post on Digg Del.icio.us Technorati Twitter
	Quote

09-13-2006, 01:45 AM	#4
VINPELA Join Date Oct 2005 Posts 425 Senior Member	It's awkward but yes - you would have to knock the work back. The questions asked would be how the existing client found you after you'd left your current place of work - just luck that they happen to leave your current place and speak to you? The clause itself can be difficult to enforce because there is also a "Freedom of employment" rule - basically no company is allowed to stop you earning a living. Many companies slip bits into their contract about "Not working for another company in the same industry or a rival for a year after leaving". That's all well and good, however because of the work you do you may find that the only way to get work is to work for a "rival" and in that case they cannot stop you - unless of course they are willing to pay for you to sit around and not work for a year You would be a lot safer knocking back any such work for the full 12 months - especially if you're good at your job and your old place of employment consider you now a rival. Share Share this post on Digg Del.icio.us Technorati Twitter
	Quote

09-13-2006, 02:08 AM	#5
shumozar Join Date Oct 2005 Posts 524 Senior Member	so I need to knock work back? that is going to be very difficult. There is a way out of it, go to tribunal, and claim that it is damaging to your career as you are classed as a niche worker. Many companies will fold it out of contract if you go ahead with it, as the law would be on your side. Share Share this post on Digg Del.icio.us Technorati Twitter
	Quote

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