I have accepted a job for a rival company? Where to I stand legally?

lukechad

lukechad

lukechad

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Just a bit of quick help from someone who may have been in a similar position to the one I currently find myself in.

Today, I accepted a new position as a signmaker for another company in the town as some 10 months ago I was conned almost into taking up a new role with my current employer, leaving behind the work I was good at and enjoyed to a position I really dont enjoy.

Now, in my current contract of employment it does state that I cannot work for a rival company within a 5 mile radius of my current employer, which this new company does.

Now, the new position will see me going back to the job I used to enjoy and was good at. So my position will not be the same as the one I have curretly.

Now, I was also made to take my breaks seperate to the rest of the team about 4 weeks ago as they required somebody to answer the phones all the while, so that was my job when the rest of the team were on break, then once they were finished I would then take my break time alone.

Just after a bit of advice or help on where I stand legally, I will be handing in my weeks notice tomorrow to my current employer but I obviously wont inform them of my next employer.

I did while looking for a job send to another signmaker in the area who got back to be with a negative response with regards any available positions but did say "I would be very interested to see what it says in your contract about working for another local sign company, we have this clause in our contracts (not that it would ever stand in court)"

So.... anyone able to help me incase of awkward situations in the future.

Thanks.
 
I've heard of similar clauses in employment contracts but I've yet to see a company actually do anything about it when the clause is broken.

EDIT: I'm no lawyer, proceded at own risk, etc etc.
 
do you have to tell your current company where your going to? just tell them you to leave to go travelling etc.
 
My understanding is that these sort of clauses are lawful if they are reasonable, and unfortunately a 5 mile radius could well be considered reasonable. I think we had a thread a while back from someone whose sister was a hairdresser facing a similar problem, dunno how that turned out.

Probably best to get proper legal advice - maybe join a union perhaps.
 
Gman said:
do you have to tell your current company where your going to? just tell them you to leave to go travelling etc.
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No I dont, but i'm pretty sure the first thing I will be asked is "where are you going", I did think about telling them I was moving to a company in Derby (10 miles away) to take a job within an engineering firm or such like. Just think it would be a bit harsh to say "id rather not sa thanks" as I feel this would raise suspicion too...
 
Don't think they have a legal leg to stand on.

in fact, I have seen a document about writing employment contracts which states they aren't really legal or enforceable!
 
Conflicting stories here then.... would still like to hear more from peoples past experience.... will be hitting google now as I dont have time really to seek proper legal advice... I mean nothing is set in stone for start dates for my new job but I would like a smoother transition as possible!

Oxy said:
Just say you are going are not happy and resigning. They need not know more.
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This is what I would like to say ideally, but under pressure in-front of a very annoyed boss I may not come across as concise as this, I did raise my concerns about my position with the bosses probably 4-5 weeks ago and I was totally ignored.
 
In this day and age you find employment where you can, anything that prevents that is surely unreasonable.

It depends on your customer base as much as the physical location. Signs can be made anywhere, a haircut would have to be done locally.

Also you may have a case for constructive dismissal if you have been discriminated against. A rota for breaktimes would have been a far better solution.
 
brummie said:
What does it say. you can never work with 5 miles? or the next job cant be?
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Without looking at the contract I cant quote exactly, but something along the lines of "you may not, for 2 years after ending your employment with **** work or be associated with another company who may be deemed a direct competitor, within a 5 mile radius of **(where I work)**"
 
lukechad said:
No I dont, but i'm pretty sure the first thing I will be asked is "where are you going", I did think about telling them I was moving to a company in Derby (10 miles away) to take a job within an engineering firm or such like. Just think it would be a bit harsh to say "id rather not sa thanks" as I feel this would raise suspicion too...
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What I don't get is, how on earth does any company think they can dictate what other companies their ex-employees work at?

The way I read your post initially made it seem like "you can't work for a rival while working for us" which would make some sense.

For them to tell you can't work for a rival when you've left them all together and aren't on their payroll, is utterly ridiculous.

It's like Tesco Club Card members being told that to qualify for a club card, they're not allowed to shop at any of their rival's stores.

It makes me wonder why such things are written in to employment contracts as I can't see how they're enforceable.

Say for example, you get a temp job, for a week, at somewhere completely unrelated, then move to their rival.

Arguably, they'd have no right to say anything, and such a situation seems ridiculous to have to do. If you're awarded a job, it should be your choice, and your choice alone to accept and leave your current job.
 
lukechad said:
Without looking at the contract I cant quote exactly, but something along the lines of "you may not, for 2 years after ending your employment with **** work or be associated with another company who may be deemed a direct competitor, within a 5 mile radius of **(where I work)**"
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Thats unreasonable. They are saying you would possibly have to claim benefits for two years rather than taking a possible job.
 
Hey,

It was my sister I wrote a thread about when she moved to a new hair salon in the town.

It is legally enforceable, she had to stay out of work for something like 4 months (working part time in other places and living off savings) before going back to the salon. It should have a time frame on it I believe.

That was an agreement reached out of 'court' though as my parents had already lent her 1k to get to that point, any further would've been potentially an expensive lesson learned.

For the record, I think it's BS that an employer can do that to you, but there you go.
 
lukechad said:
Without looking at the contract I cant quote exactly, but something along the lines of "you may not, for 2 years after ending your employment with **** work or be associated with another company who may be deemed a direct competitor, within a 5 mile radius of **(where I work)**"
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Totally unenforcable, your customer base is most likely largely phone, fax and internet based. A physical location is irrelevant.

If it was the old days when you went around and hand painted shop signs it would be different.
 
Quick scan found http://www.out-law.com/page-7086

Where an employer claims damages for breach of a restrictive covenant in an employment contract, the employer will need to show some loss resulting from the breach. This will normally be loss of profits on contracts or opportunities diverted by the employee. Often it is hard to prove that such contracts or opportunities would have definitely been placed with the employer had it not been for the employee's breach. In such cases, the courts will evaluate damages based on the chance the employer has been deprived of. Assessing damages in this area is often difficult. However, the courts will not allow this difficulty to free a wrongdoer from paying damages for his breach.
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I spoke with my grandad who know a little about employment law, only from his past life experience and when I told him he said it was utter rubbish.

Now do I have some grounds on the fact my new job role is not the same role I am leaving. I will keep customer names secret as I feel that is the wrong thing to do regardless of what terms I leave on.

Also, my current employer do a wide range of signmaking and graphics wheras this company specialize in vehicle livery and smaller stuff. They have worked in the same town along side one another for 15 years....

Its all very confusing but I dont want to end up in court over this, thats my main concern... at the end of the day the actions of my employer led me to be unhappy in my job and seek employment elsewhere, just so happened that a company in the same trade as myself was taking on new staff.
 
Just don't tell them where your going. Even if they find out it won't be worth them pursuing it.
 
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