Employment contract questions.

[AngelGrinder]

Hey all, all advice welcome.

Long story short, been at my company over 4 years, a year and a half ago, company went into administration, and gained a new owner. Many things have changed and I no longer have any long term plans to stay. Where I work is a fairly niche industry, I could make a basic wage elsewhere, but with my skills I can earn a lot more.

Recently a guy left and on his last day, was asked to sign a form saying he wouldn't work for any competitors, as he was leaving he refused to sign it.
my problem, is we are all getting new contracts tomorrow, and things like this in them, would utterly destroy any chance of me leaving and making a decent wage. What are my options? Does the contract come into effect as soon as I am given it? Or not until I sign it? How long can I refuse to sign it (saying I'm reading it and checking etc) and what will be the outcome if I refuse to sign? Instant dismissal? Redundancy?

All advice and experiences would be great!
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[lihp]

non-competition contracts are usually non-enforceable
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[Skudd]

I thought that hey were doing away with these not bringing them in. Freedom in the EU and all that.
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[AngelGrinder]

Unfortunately my boss loves lawyers and court battles, and constantly reminds me that I should be eternally grateful to him for paying my wage. If I left and went to a competitor, and there was any possibility he could cause problems, I'm sure he would. Hes brought 2 consultants in to help with contracts and company restructuring etc.

A few people have said they are usually ok to to ignore the non competition contracts, but as said, he likes a court battle, and I'm not someone who can afford lawyers etc. He recently won a court battle against a major film/tv company in the US so I'm sure his ego is inflated currently.
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Currently Riding - 2002 Aprilia RSV1000 Mille

[lihp]

https://www.olswang.com/employment/pel_sep07/Will_your_restrictive_covenants_stand_up_in_court.pdf

[Jewlio Iglesias]

I have no ties to this guy, but I subscribe to his newsletter, and find it a mine of information.

https://www.danielbarnett.co.uk/
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[Rogerborg]

The answers to your questions are entirely dependent on your employer, the nature of the business and your specific job.

If you want meaningful answers, you'll need to disclose all that information, and I suggest that you do it to an employment law specialist.

Or better yet, jump before it becomes an issue.
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[Itchy]

[........................]

[Rogerborg]

[Dan87]

How long since the company was taken over?

Also your contract at the moment is legally binding and cannot be alerted without both parties conscent. If you are not happy with it, you do not have to sign it, and advise them that you are working under protest. However as others have said non competes are particularly hard to enforce.

[AngelGrinder]

Company was taken over September 13, lack of new contract is down to new owners lack of competence. He has 2 consultants brought in December to sort things out, as we are losing large amounts of staff. Positions have been replaced mostly with friends of the boss, being paid as consultants via the boss.

When the company used to exist before the new owner, it was 2 companies, so the old company is still owned by the previous director. There has been many court battles over trading names, patents Etc. The old boss is someone who is likely to employ me. Old boss is constantly demonized by current boss, so of I moved there, it would likely really piss him off.

Thanks for all the advice so far.
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Currently Riding - 2002 Aprilia RSV1000 Mille

[tracks]

I had a similar situation a while ago where my employer offered me a parachute exit payment if I signed a restrictive covenant that stopped me working for a competitor for 12 months. I didn't sign it.

If you leave of your own accord and your employer tries to get you to sign one, don't. He cannot deny you the right to make a living in your chosen industry or profession.

The only time this may be an issue is if you are involved in sales and you poach his existing clients. That may be frowned upon.

[andys675]

given my first contract after 9 years with the company, couldn't be bothered to read it, I was more interested in the legality of it, and discovered that after 6 months employment any contract is not worth the paper it's written on, told the boss and he went away and didn't bring it up again
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[nelmo]

I'm currently interviewing at a company which has these terms and I've heard some bad stories about them trying to enforce them. However, cannot find any direct evidence or proof of this, just word of mouth.

However, my thinking is, why tell them where you are moving on to? Just lie and saying you are going to a non-competitor, no? I once lied to an employer and said I WAS going to a competitor and they let me leave without working my notice - one months paid holiday
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[stinkwheel]

Upshot of restrictive covenants is they have to be brought in front of a magistrate or sherriff to be enforced.

A magistrate is not going to issue a court order preventing someone from earning a living. There has to be a good reason. "Vexatious" action to get one over on an ex employee is highly frowned upon.

The thing with people attempting to add unwanted clauses/new contracts is to dispute them. But quietly. Idealy in such a way as they don't notice.

My boss tried to lump me with a new contract. I disputed several clauses and refused to accept the contract as it stood, in writing, in the form of a bland and very verbose memo submitted directly into his hand when he was super busy. That was 7 years ago. I still have a copy on file. He has yet to respond. Is it an enforceable contract?
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[Clanger]

I had a contract that stated if I signed I would waiver my entitlement to the 48hour week directive...or something (I can't fully remember the exact wording). I sought advice, the crux of it was, if signed I could be asked to work more than 48hours without any come back. I decided I didn't want to work for 48hours or more a week, so I made an addendum to the contract.

Discussed it with HR and they accepted it. And that was that. No issues. I kept doing my 35hour week job.
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