Working for competing companies

[privateeye]

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?

As you know it's quite standard for S3 to threaten court action with anything that does not go their way. I hope you continue to ignore them, I've had a couple of battles with them on behalf of other contractors as well as myself - won them all. I believe you are right that the company has to pay you to be on garden leave otherwise their threats cannot hold.

Most contracts employment/contract or whatever contain clauses that are not legally enforceable - so always get legal advice. If it was legally enforeable then the question is why do so many companies pay for garden leave.

[malvolio]

It's a bit more diificult in your situation, since you will have knowledge of client lists and contacts as well as potential candidates even if you haven't taken any physical records with you, so your ex-employers might be a bit more concerned than me taking my Change Control process when I go.

I should get legal advice if you want to be certain, but the test applied (according to EGOS) is that of reasonableness - if the restriction is reasonable, in terms of protecting the former employer's situation, then it can be upheld, if not it can't.

Signing an NDA or similar undertaking not to contact former clients for a while is not unreasonable in your trade - the only potetnial debate is how long for.

[Torran]

the agencies in Edinburgh seem to have an unwritten understanding that you take a 4 month break before reengaging with the same company. Not sure how much the big banks etc actually care however.

Always a way round it however