HELP - Left my job - Now no job!

[dave1509]

Hi there

 

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)

 

HHEELLPPPP!!!!!

[paulgmb]

I understand that restrictive covenants are difficult for a company to enforce but they would have to take independent legal advice.

 

They could take a non active role in the company, like work as non executive directors or even work freelance for you?

 

I hope this helps?

 

Regards,

 

Paul.

[dave1509]

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

[paulgmb]

Hi again Dae,

 

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.

 

Regards,

 

Paul.

[JonCris]

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'

[dave1509]

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?

[bed32]

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.

[dave1509]

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

[JonCris]

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

[JonCris]

Can you sue them?

 

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

[gadgetgirl79]

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.

[dave1509]

Yeah - Easier said than done, I wont get my old job back, no chance, thats another story

[gadgetgirl79]

In that case, you should re-vamp your CV immediately, and post it online with a recruitment agency like monster.

 

I know you must be angry about this, but at the moment you need to stop dwelling on the past, and think about the now and getting another job.

[dave1509]

Thanks for the advice and I know you mean well but £100k+ pa jobs are not that easy to come by

[JonCris]

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............whilst planting roses

[JonCris]

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

[crh]

i've got one in my contract too but i've heard it isnt enforceable in court

 

if they dont want you to work for six months then they have to pay!

[shywazz]

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.

[dave1509]

Thanks for that sound advice shywazz, very useful

[djgordyp]

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 :confused:

[JonCris]

Why are we introducing the politics of envy into this discussion.....just because someone earns more doesn't mean they have everything cosy by any means after having lost their job.......as someone who had been a both ends of the earning scale in my career I can tell those who have started carping that being a high earner & losing your job is a great deal more scary than being low paid

 

The high paid will have much greater living expenses & will find it much more difficult to find a suitable position that maintains their standard of living........the low paid can on the other hand go & work.....where was it.....I know where djgordyp works

 

The OP didn't need to ensure these guys could leave without repercussions.........It's perfectly reasonable for the OP to think they did that before attempting to embark on this venture........No it was in their contracts so they should have known the problem would occur.......They caused the problem not the OP

 

To those claiming it's the OP's fault....ain't hindsight a wonderful thing.........especially when it doesn't effect you

[djgordyp]

Point taken Jon but who mentioned anything about envy? Of course I would like to earn a bit more than at present. What I was trying to point out was that the OP was earning more than most people could dream of. And if the job was secure why then take any risk at all.

 

the low paid can on the other hand go & work.....where was it.....I know where djgordyp works

 

Don't forget, it's the likes of us who enable big bosses and directors to earn that sort of money.

Anyway, this is taking away from the main subject of this thread so I'll just say 'be happy with what you've got, there's no need to be greedy' and leave it at that.

 

The OP didn't need to ensure these guys could leave without repercussions.........It' s perfectly reasonable for the OP to think they did that before attempting to embark on this venture........No it was in their contracts so they should have known the problem would occur.......They caused the problem not the OP

 

But surely if it's a fairly stabdard clause then it would, most likely, have been in the OP's contract as well and he should have queried it.

[JonCris]

I know precisely who 'earns' the money to pay the execs..bin there .....dun that........but in many cases if it wasn't for high paid execs many of the workers wouldn't have jobs anyway

 

As I said just because the OP earned a good salary should be no reason to castigate him when he's asking for help & no matter which way you cut it that's what was being done

[rdm2006]

sorry despite being a £13000 earner myself im with joncris on this one, and who says this guy was an exec it may have been that he was highly paid as he was doing a dangerous job??

[Helford]

VERY SURPPRISED AND DISTURBED at the tone of some of the postings here.

 

Regardless of our current/past earnings and mistakes (Which I am sure that we have all made!) these forums are about helping each other without standing in judgement. Come on folks.

 

Constructive comment please! Follow the spirit of the forum.

 

H