Non-compete and moving abroad

**Guy Incognito** · 13 October 2022, 09:34

You are in a negotiation. You can wait the six months or you can negotiate out of the contract you signed (or break and hope they don't come after you). Yes whatever you negotiate with them is legal.

**Lance** · 13 October 2022, 09:55

Yes it's legal. In that it's not illegal. They are asking you to compensate them financially.
Doesn't mean you have to do it, or that it's enforceable.

You could tell them to foxtrot oscar.
You could tell them 'fine, yeah, OK'. Do the move and simply ignore them.
You could pay what they want.

The worst case scenario is they sue you, or your company. Unlikely but it won't cost them much to threaten it.
Realistically you will be in another jurisdiction, and will have closed your LTD company (or will you?) so there's not really much in it for them.

**WTFH** · 13 October 2022, 10:06

Originally posted by thepartridge View Post

The agency I work for have no presence in Asia and it would be impossible to carry on the current arrangement as is.

Why would it be impossible to carry on?

It doesn't matter whether the agency has a presence in Asia or not. Or am I missing something here?

**WTFH** · 13 October 2022, 10:14

One other question... are you SURE this is your first post?

**Paralytic** · 21 October 2022, 07:32

Originally posted by WTFH View Post

One other question... are you SURE this is your first post?

Methinks someone has been looking at the IP addresses of posts...

**eek** · 21 October 2022, 07:34

Originally posted by thepartridge View Post

Hi all,

First time post, so please be gentle!

I work for an agency in which I carry out consultancy for a global end-client. It is an inside IR35 contract.

I have a non-compete (restrictive covenant) that prohibits me from working with the same end client for six months after the end of my most recent assignment.

Me and wife have decided we would like to move to her home country in Asia. The end client has made it clear to me they are happy for me to carry on working there as an independent contractor. The agency I work for have no presence in Asia and it would be impossible to carry on the current arrangement as is.

When I have mentioned that I would like to move to my agency, they inform me that they want to keep a financial arrangement open where they are compensated either via subcontracting my services to my future business (to keep their cut of my rate) or via some kind of payoff. This to me seems quite extreme, is this legal?

Thank you in advance!

WTF did you mention anything to the agency?

They now know what you are doing and will get you as soon as you return to the UK.

**SueEllen** · 21 October 2022, 08:10

Originally posted by eek View Post

WTF did you mention anything to the agency?

They now know what you are doing and will get you as soon as you return to the UK.

You have politely put what I was trying to write when I saw this post.

@thepartridge If you didn't tell the agency, they found out but you are in Asia then it would be very hard for them to enforce the clause due to the different legal jurisdiction you are in.

**northernladuk** · 21 October 2022, 09:23

Originally posted by SueEllen View Post

@thepartridge If you didn't tell the agency, they found out but you are in Asia then it would be very hard for them to enforce the clause due to the different legal jurisdiction you are in.

Possibly but we don't know what is in the upper contract with the client. If the agency can't get their money from the contractor they are sure as eggs going to take it to the client. It would depend on how well embeded they are with teh client as to how much of a stink they can kick up but they'll certainly point out any relevant clauses in the contract and legal will have to get involved. Legal depts tend to not give two hoots about what managers what and will play it to the letter. Really depends on who at the client says you can carry on as well. Hiring manager might be OK with it but they are not the final word when it comes to contractual arguements, particularly in a large organisation.

You also have to think about how you will get paid. International tax law is complicated and I would imagine puts some risk on the client they may not be willing to put up with as well. They might so they are OK you working for them but when you start billing them through international means or they have to send money abroad they may not be quite so happy so need to work that bit out to make sure the client is OK with it.

If you are just going to bugger off, breach contract and avoid penalties you will have to be very prepared for the client to drop you to avoid any legal issues with the agency. No contractor is irreplaceable and not worth getting in to legal disputes about however good you think you are.

You are just going to have to keep negotiating with all parties here but keep it in mind that getting canned is a very real possibility

Non-compete and moving abroad