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I recently left a job at a senior level with a company to go and set up another company with two of the founders of the first company who had sold up and moved on (with me?)
I spent 3-4 weeks looking for suppliers, contacting potential staff and looking for suitable premesis
I even persuaded a supplier to leave his company and set up as a freelancer to help me
What has transpired is the directors of the company i was going to set up for, have discovered that they have restrictive covenents preventing them from setting up a rival company
This leaves me without a job or any money
Does anyone have any advice? - What can I do?, I have no formal contract with the directors but a ton of emails discussing compay names, locations etc that clearly show intent
HELP!!!!
It is extremely unlikely that I will be able to get a job at the level that I was at (it's a fairly specialist kind of company with only 1 other directly comparative player in the marketplace)
Hi Paul
They are based abroad and have had very expensive lawyers all over it and its tighter than a ducks bum apparenly, they can't have anything whatsoever to do with setting up a rival business in any way
I'm more interested in what can I do as now I am left with no job, I should be returned to the position (at least financially) that I was in before leaving a job in good faith to work for them
In my opinion anyway - I dont know if legally speaking that is possible
I seem to recall cases previously where it was found that these convenants breeched competition laws but I'm no expert.
If you have voluntarily left your previous company then they do not have to take you back. If you have nothing to lose why not go ahead and register in your partners name?
Whats the worst solicitors can do?
I think its a case of sink or swim unless your previous employers are willing to take you back.
In this country they can only restrict trade for short periods 6 months is the norm & if longer they must send them on gardening leave when they will continue to be paid.
The only long term restriction they can apply is that their clients must not be poached nor must any intellectual material be used without their express consent
Such covenants are never water tight (& don't let anyone con you into thinking otherwise) as they mostly do breach competition laws by being classed as a 'restriction of trade'
It was a restrictive covenant set up in Singapore (as this is an international company) because they were board directors and the contracts they signed (righly or wrongly) stipulate they could not be involved in any way whatsoever in the UK
They are adamant they will not do anything here for 2 years - Ive suggested so many different ways of trying to get around it but they will not budge, they are too scared that they will incur the wrath of the CEO (a multi billionaire who would take delight in stuffing them)
The issue I need help with is - Can I sue them for loss of earnings?
If they acted in good faith and did not mislead you then I really don't see that you have any claim against them at all, or if you did one of only minimal value.
Well, they told me they could set up in the uk if they went through Dubai (as you dont hav to declare directors) then changed their minds after speaking to their lawyers
So in other words they didnt do any due dilligence
It's called a 'clause of jurisdiction' but if there job is here & they are based here then despite this they are entitled to the protection of English Law.
Most such clauses are not recognised be many overseas courts including America & Russia amongst others......Also I doubt that Singapore Law, which is based on English Law, will either
Well yes you can try but you would have to prove they led you on.
On the otherhand lets face it they should have known there would be problems when they left & should have prepared accordingly which seeing they didn't does seem to indicate that you have case for seeking damages
I was under the impression that most jobs (and not just directors) have a covenant in the contract that does not allow them to work for or set up a rival company for so many months or years after leaving.
I certainly have one in my contract!
I think the best thing you can do is look for another job, either a different one, or go back to your old company. The company wasn't actually founded, so at the time you left, the job didn't as such exist, so although you could try and sue, it might be rather tricky to sue for something that wasn't necessarily set in stone.
I was under the impression that most jobs (and not just directors) have a covenant in the contract that does not allow them to work for or set up a rival company for so many months or years after leaving.
I certainly have one in my contract!
I think the best thing you can do is look for another job, either a different one, or go back to your old company. The company wasn't actually founded, so at the time you left, the job didn't as such exist, so although you could try and sue, it might be rather tricky to sue for something that wasn't necessarily set in stone.
If you have such a covenant in your contract it's unenforceable as being a 'restriction of trade' Any such covenant can only have a limited restriction of a few months, plus don't nick the clients, don't work within say 7 miles & don't use any of our intellectual property
& if they want to have you remain unemployed for some time they have to continue paying your salary.........in other words your employment won't terminate until the covenant is satisfied........oh almost forgot you continue to accumulate holiday entitlement & bonuses during this sabbatical............whi lst planting roses
Almost forgot if whilst you on your gardening leave & they remove any of the benefits like a company car you can claim extra renumeration for loss of amenity
Hence the need for back-up plans incase of such events, you didnt leave the company and opt to go it alone over a coffee and biscuit, this was discussed with others over many weeks if not months, behind your bosses back, the people you were going into business with found out there could be in trouble if there did, something that should have been addressed well befor you terminated you employment contract, why should these people now pay you for you leaving your employment, you really should have done your homework before jumping the ship that fed/paid you....hurts when it bites doesnt it.
Sorry this isn't going to be helpful but I felt I just had to get my 2p in after reading this thread. I'm afraid you won't get much sympathy from me or, no doubt, many other low paid hard grafting workers. If you were earning that sort of money then you must be, or should be intelligent enough not to rush into things without doing proper checks first. Greed must be a terrible desiease.
You could always get a job where I work. They are always looking for workers to trim or pack beef. And the pays not too bad either, nearly £13000 p.a.
"This leaves me without a job or any money" £100,000 and you have no money
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HELP - Left my job - Now no job!
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Originally Posted by gadgetgirl79
