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Leggy_Girl
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PostPosted: 19:13 - 05 Mar 2009    Post subject: Question about a clause in my employment contract Reply with quote

Hi guys, i'm back! As always I need help with something, and wondered if anyone could answer this for me please?

I'm a fitness instructor working in a little gym, but want to get a new job because my employers are impossible to work with.

Something that worries me though is that in my contract it says i can't work in another gym within 5 miles of the one i currently work in, for 6 months after i leave their employment. My employer keeps pointing this out to me because he knows i'm not happy and want to leave. His words are 'we will legally enforce this clause if we need to' .

I want to work in another gym, but 5 miles from my current work place encompasses the whole damn city! I can't travel further away and to be frank don't want to.

Is my employer blowing smoke with this clause in my contract and can he actually dictate where i can work after leaving? Surely no one can effectively tell you that can't seek employment, no matter what sector it's in? Is this idle threats to get me to stay? (they keep driving staff out because of their attitude and are currently down to 2 members of staff including me, down from 7!).

Confused
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Itchy
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PostPosted: 19:27 - 05 Mar 2009    Post subject: Reply with quote

Its only valid if the clause is reasonable but the test of reasonable has to be tested in court.

Ie they can't say for the rest of your life, or within 100 miles as this would be unreasonable.

Also I think thereis something about what they seek to protect in that it is allowable to protect say their clients confidential information and secrets used in the industry.

However its not ok to protect a monopoly or business interests by muscling out the competition.

HOWEVER seek legal advice , CRB maybe or a solicitors free session workshop thing. And check the exact wording of the contract.

As accountants are not supposed to nick clients but it happens all the time and I've never heard anything come of it.


A clever way out is to look at the wording it says Gym? , I'm not working for a Gym I'm working for a health club. But again seek legal advice.
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stinkwheel
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PostPosted: 19:55 - 05 Mar 2009    Post subject: Reply with quote

Moral of the story.

Read a contract before you sign it. If you aren't happy with something, get it changed (or, my personal favourite, score it out then sign it, 95% chance they just file it without looking. Cue them looking like a fool in court when asked to produce the original document).

There is a similar clause in my contract but I thought it was reasonable. It is there to stop me setting up in competition to the company I work for and stealing their clients.

As a general rule court will NOT prevent someone from earning a living, regardless of what it says in the contract.

If you did go and work somewhere else within 5 miles, they would have to get an injunction taken out against you which you could then appeal. It's almost certainly too expensive and too much like hard work for the little to no benefit they'd get from such an action.
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Leggy_Girl
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PostPosted: 21:12 - 05 Mar 2009    Post subject: Reply with quote

I did read it before i signed it, and i thought it was reasonable at the time. Also as time went on i didn't want to work in another gym after this because they had all but put me off working in gyms ever again, so i naively thought 'that bit doesn't apply to me, my next job will be in an office. I'll make sure of it'. Sounds stupid i know but that's it in a nut shell if i'm honest.

I've applied for scores of office jobs in the last 5 months, but have gotten no where. When there's 100 applicants for one position the odds are against me, and although i've not given up i'm now getting desperate. My logic therefore is i should now apply to gyms as well, but not through choice. I see this as necessity and bettering my chances, and not necessarily fuelling the competiton against them. I'm not happy at the gym because of my employers, and it's bringing me down. If i have to work in another gym just to get away from them then i'm willing to do it, but i don't want anymore aggro from them.

Surely i don't have to tell them where my next job is going to be? How would they ever find out? What would the injunction against me intail (if they found out and if they decided to pursue it?)?
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Tonka
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PostPosted: 21:42 - 05 Mar 2009    Post subject: Reply with quote

Had a little search on t'internet and found this.

Looks like the situation you are in and seemed relevant, so hope it helps!
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Leggy_Girl
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PostPosted: 22:01 - 05 Mar 2009    Post subject: Reply with quote

stinkwheel wrote:
If you aren't happy with something, get it changed (or, my personal favourite, score it out then sign it, 95% chance they just file it without looking. Cue them looking like a fool in court when asked to produce the original document).


I never knew you could do that. I thought a contract wasn't up for negotiation and that what it said in black and white was there for you to take or leave in its entirety. I will bear that in mind for future reference though! Thumbs Up
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stinkwheel
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PostPosted: 22:10 - 05 Mar 2009    Post subject: Reply with quote

Leggy_Girl wrote:

What would the injunction against me intail (if they found out and if they decided to pursue it?)?


A court could order the termination of your new employment until the employers case for damages was heard.

In reality, the presumption is AGAINST granting an injunction for a breach of these conditions. The previous employer would have to show that there was a genuine risk of you compromising their business by doing so, they would have to show there would a quantifiable and significant loss to claim damages for and they would have to show they weren't just doing it to be "vexatious" (ie, doing it soley to fuck you over).

In real life, unless you had say, two gyms opposite one another and customers started leaving one to come to the one you had moved to or you set up your own gym nearby anbd started touting for customers, I doubt there would be a case.

I also get the impression you are a fairly low-level employee. As such, it would be hard to show you pull sufficient weight to be a threat to their business.

It is also worth recording these "Threats", time, date, when said and if anyone heard them. This kind of evidence would show a magistrate they were being "vexatious" in a pre-meditated fashion.
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stinkwheel
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PostPosted: 22:23 - 05 Mar 2009    Post subject: Reply with quote

Leggy_Girl wrote:

I never knew you could do that. I thought a contract wasn't up for negotiation and that what it said in black and white was there for you to take or leave in its entirety. I will bear that in mind for future reference though! Thumbs Up


All contracts are a negotiation. Ultimately it is up to you if you want to sign up to their conditions, you are under no obligation to sign up to conditions that are unduly onerous. Most emp[loyers are happy to discuss any concerns you might have with their contract. You work for them, they don't own you.

If you can't reach an agreement, ultimately you have to go your seperate ways but they usually want you to work for them. After all, you are the person they selected from all the applicants as being best suited for the job.

It is also worth bearing in mind that a contract really only ever comes into play when the normal working relationship has broken down. A point may seem reasonable at the time of signing but bear in mind it may be being used by an unreasonable person in the future.
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MattEMulsion
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PostPosted: 07:46 - 06 Mar 2009    Post subject: Reply with quote

How about if you got yourself the sack, surely then they couldn't legally stop you from working wherever you wanted. Wink
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Graprilia
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PostPosted: 10:55 - 06 Mar 2009    Post subject: Reply with quote

surely if and when you resign effectively you are termiating your employment thus ending the contract which means you are free to do as you please.

However if in the contract you signed clearly stated the fact then i guess your stuck or need to seek legal advice.
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Itchy
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PostPosted: 14:03 - 06 Mar 2009    Post subject: Reply with quote

stinkwheel wrote:


All contracts are a negotiation. Ultimately it is up to you if you want to sign up to their conditions, you are under no obligation to sign up to conditions that are unduly onerous. Most emp[loyers are happy to discuss any concerns you might have with their contract. You work for them, they don't own you.


Should tell that to my old bosses (all of them) ie sign this new contract or you are fired , it is NON negotiable however they were bad at contract law and always put if you do not sign then we assume you accept this contract. Silence isn't acceptance of a contract.
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ace2004k
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PostPosted: 16:41 - 06 Mar 2009    Post subject: Reply with quote

You can always use the 'Unfair Contract Terms Act 1977' as a come back to your employers percieved threats. This would more than likely be backed up by the recently passed Employment Act 2008!

I suspect that he will just be calling your bluff because even if he did take you to court (which i doubt he would because the costs would be too high to justify) no judge in the land would rule in favour of a term that restricts employment in this way.

If you are unhappy serve your notice & leave the job. Even if you decide to work in the gym within 5 miles you or your new employer would be under no obligation to give the old employer details on your current employment status...data protection act & all that!
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stinkwheel
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PostPosted: 16:43 - 06 Mar 2009    Post subject: Reply with quote

Itchy wrote:


Should tell that to my old bosses (all of them) ie sign this new contract or you are fired , it is NON negotiable


A contract signed under duress is no contract at all. Therefore it is utterly unenforceable and your current one remains extant.

I would also love to see how they would explain firing you under those circumstances to a tribunal.

This is another point actually. If there is a ludicrous term in a contract, it's often better to leave it in there rather than negotiate for something slightly less ludicrous. Courts tend to take the view that any terms and conditions must be reasonable, if a condition is totally unreasonable, it would not be upheld.
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Phoenix
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PostPosted: 22:51 - 06 Mar 2009    Post subject: Reply with quote

Graprilia wrote:
surely if and when you resign effectively you are termiating your employment thus ending the contract which means you are free to do as you please.

However if in the contract you signed clearly stated the fact then i guess your stuck or need to seek legal advice.


Well that's a great contradiction there.

Personally I think i'd be inclined to do as I please, leave the job and find one at another gym (within 5 miles) and see what they do, my bet is absolutely nothing. If they did do anything I think a court would laugh at them, cannot even begin to see how you working for another gym would compromise their business.
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Pie-Roe
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PostPosted: 01:18 - 07 Mar 2009    Post subject: Reply with quote

Are there any gyms within 5 miles?

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Toukakoukan
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PostPosted: 03:07 - 07 Mar 2009    Post subject: Reply with quote

Personally I'd say that it sounds highly unenforceable to me and even if they did want to try it on, there is no way it'd be worth the hassle of a course case for them to try and get it enforced.

Unless you have the magic jim'll-fix-it cure to obesity that you and you alone can hand out in person of course :p
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Leggy_Girl
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PostPosted: 10:32 - 07 Mar 2009    Post subject: Reply with quote

pyroforlife wrote:
Are there any gyms within 5 miles?


There's 2 or 3 that i know of, but thats' literally just gyms. I know there's a few more if you count 'health clubs' but it depends what they class as competition i suppose.

I've seen one that i might have a chance of getting a job in which is 1.6 miles away from my current gym. I don't think my boss really pays close attention to the competition, because this one changed names and owners 4 months ago, but he doesn't know this. Strange for someone who claims to be so vigilant about the competition.

The wording on my contract is:

Quote:
You covenant that you will not for a period of 6 months from the date of termination of your employment ("termination date") and within 5 miles, on your own account or with any other person, directly or indirectly carry onor be engaged in any activity or business which is or is intended to be in competition with the business of the Company (or any group company associated company) which was carried on by such Company at the termination date and with which you were concerned or connected at any time during the 6 months prior to the termination date.

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Itchy
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PostPosted: 10:35 - 07 Mar 2009    Post subject: Reply with quote

The wording on my contract is:

Quote:
You covenant that you will not for a period of 6 months from the date of termination of your employment ("termination date") and within 5 miles, on your own account or with any other person, directly or indirectly carry onor be engaged in any activity or business which is or is intended to be in competition with the business of the Company (or any group company associated company) which was carried on by such Company at the termination date and with which you were concerned or connected at any time during the 6 months prior to the termination date.
[/quote]


Looks fairly vague wide and unreasonable if you ask me but then I'm not a member of a court.
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ace2004k
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PostPosted: 11:01 - 07 Mar 2009    Post subject: Reply with quote

The wording of your contract seems to point toward competitions laws that apply to companies and not individuals.

If he did have the balls to take it to court you would, i suspect have a very good defense as my belief when it comes to competition clauses is that they can only be enforceable if you are senior enough within the business to have a material effect on the business if you were to join a rival. No disrespect but i do not think your current position would be covered in this way!

Work your notice per your contract and call his bluff. I suspect it will not be worth his time!
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tutton
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PostPosted: 23:22 - 07 Mar 2009    Post subject: Reply with quote

Isnt that gym not in direct competiton, and caters for different kind of clients? Wink Laughing
Thought so....
What can he say about that..
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JonB
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PostPosted: 09:46 - 08 Mar 2009    Post subject: Reply with quote

I think in this current economic climate, it would get thrown out of court, you need to pay the bills, so the other gym could GFT.
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Leggy_Girl
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PostPosted: 11:59 - 08 Mar 2009    Post subject: Reply with quote

tutton wrote:
Isnt that gym not in direct competiton, and caters for different kind of clients? Wink Laughing
Thought so....
What can he say about that..


You're actually not far from the truth there!! It really does cater for different people to the one i currently work in! Mine is a little rinky-dink circuit gym for toning, but this other one is a proper gym with cardio and a studio for hard core gym bunnies!

Very Happy

Thanks for all your help guys. I feel a lot less worried about this whole situation now. If i'm lucky enough to get another job soon, i'm going to hand my notice in, stand my ground and call his bluff if he gets arsey, which lets face it is inevitable. I wont tell him where i'm going though, even if i do end up in an office somehow. It's none of his business after all Thumbs Up
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Itchy
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PostPosted: 12:04 - 08 Mar 2009    Post subject: Reply with quote

This thread is USELESS without pics, of yourself so we can see how suitable or 'qualified' you are as a fitness instructor! Mr. Green Mr. Green Mr. Green Mr. Green Mr. Green Mr. Green
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colin1
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PostPosted: 13:13 - 08 Mar 2009    Post subject: Reply with quote

Yeah some people on here might need a personal trainer...
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Leggy_Girl
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PostPosted: 17:01 - 08 Mar 2009    Post subject: Reply with quote

Itchy wrote:
This thread is USELESS without pics, of yourself so we can see how suitable or 'qualified' you are as a fitness instructor! Mr. Green Mr. Green Mr. Green Mr. Green Mr. Green Mr. Green


You all know what i look like Razz so pictures are now gone!
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