Working for competing companies

[Hogan]

Hi,

Has anyone who has moved from one company to another ever had bother with a contractual clause such as 'you can't work for the competition for x months after leaving us' .... ?

Is this something that IT companies will stick to? Does it depend on how senior you are within the company?

Interested to hear some opinions.

[Spacecadet]

Only things I've seen before are - non-disclosure agreements, ie when you finish working with one company then you keep your mouth shut. People are quite often employed on the strength of there experience, if the company is that worried about your experience going elsewhere then maybe they should be trying to keep you.

Personally though, I think its something that only effects the more senior ranks, along with; don't go head hunting your old staff

[Hogan]

Thanks SpaceCadet,

I'm moving from a permie to contract position .... and just hoping that they don't throw a spanner in the works ...

[Spacecadet]

Thanks SpaceCadet,

I'm moving from a permie to contract position .... and just hoping that they don't throw a spanner in the works ...

So theres nothing about it in your current contract of employment then?

If they're scared of you talking then they'll probably ask you to sign the NDA. They can't stop you working elsewhere

[Hogan]

Well, I notice in my current (permie) contract that there is such a clause ... and it mentions a three month interval ... I'm wondering if they're going to say anything about it.

I've only been at the company a year, and don't feel I know too many dark secrets. But of course, they may see it differently ...

[Spacecadet]

then you might have a problem... its probably just one of those things that got left in there but you never know

[The Lone Gunman]

IANAL but..... If you are contracting under your own Ltd. or even a brolly then you are working for that company. Your company is sub-contracted to the client, not you so there should be no worries. I am sure a smart lawyer would play this one.

If in doubt pay for legal advice.

[boredsenseless]

IANAL but..... If you are contracting under your own Ltd. or even a brolly then you are working for that company. Your company is sub-contracted to the client, not you so there should be no worries. I am sure a smart lawyer would play this one.

If in doubt pay for legal advice.

Legal Advice definelty - especially if you are of a senior position in your current company.

However on top of this -

You are about to become a business, and you should act like one. Talk to your employer tell them what you plan, and negotiate an outcome that all parties are happy with.

Never p1ss people of in this marketplace, they have a habit of appearing in your life again.

It may not be easy to have the discussion but it is grown up and mature, and your current company will respect you more for doing it.

Of course if they don't play ball and a lawyer agrees that you are 'safe' then so long as you have email proof that yopu organised the meeting if it ever came to anything your position is much stronger in that you can claim.

"Even though I was under no obligation to negotiate with X over my new position I felt it professional and general courtesy to inform them. They reacted in a way which was at odds with the spirit that these discussions where intended, and therefore regrettably I had to continue with my plans without their blessing."

[ASB]

Well, I notice in my current (permie) contract that there is such a clause ... and it mentions a three month interval ... I'm wondering if they're going to say anything about it.

I've only been at the company a year, and don't feel I know too many dark secrets. But of course, they may see it differently ...

Generally speaking the clause would include you going to the competition on contract etc, but does depend upon the wording.

As a general principle this sort of restraint is very difficult for the original employer to justify. Not necessarily impossible though. It's down to the originsl employer. Often the view will be taken that if you are not being paid during this period then it is not enforcable. If it bothers you go speak to an employment lawyer.

[IT contract agent]

I moved to work for a competitor and S3 are still threatening to take me to court - I keep getting stuff to sign from them. As I understand it if they're still paying you ie when you're on gardening leave you can't work for a competitor. However once they're not paying you they can't stop you from taking up a new role - restriction of trade. I haven't, and wouldn't, sign anything that you're present employer gives you that is like an NDA or something that says you can't work for a competitor for x months.

You guys will know more about this than me but you will be employed by your LTD company - would that make a difference?