Restraint of Trade - Bringing Clients to Employer

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  MrHyde on 14/08/2020 - 07:40

  +3

  You need to see what your contract says. All depends on that.

  The contract may have clauses saying you cannot approach employees, clients and potential clients that you were aware of for a period of X months or y years. Also, it may not have that clause.

  If the clause is there, the business can take you to court and you can then fight it if you so choose. The things the court will look are things like is the time period reasonable compared to your role and period of employment; did you sign the contract willingly or under duress; etc

  We can't really provide more guidance here without knowing what the contract says.

  Final comment: Restraint of trade clauses are legal in most cases. It's only in very specific situations that a court would rule them as void.

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  bemybubble on 14/08/2020 - 07:47

  The dealings i've had with restraint of trade only become valid when that right has been paid for.

  Seldom does it still if it's in an employee/employor relationship as they haven't paid you for that restraint. It would be different if you purchased a business and had restraint of trade.

  FYI i'm not a lawyer - just an accountant who has come across this a few times

  • 

    MrHyde on 14/08/2020 - 09:06

    If its in the contract, it can be argued that the salary was based on the clauses in the contract. If the person didn't want that clause, they could have asked for it to be removed and the company could have negotiated a different pay taking that into account.

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  mbck on 14/08/2020 - 08:07

  Are you classified as an an employee or contractor? As an employee usually in the contract your work is the property of the company.

  If you are a contractor then maybe you have the right to them. (Still depends on the contract)

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  Melb69 on 14/08/2020 - 08:36

  I had a 1 year clause in my contract which is fair enough. Given how much time has passed Suspect you should be fine. Check your contract if possible.

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    bobbified on 14/08/2020 - 10:35

    Given how much time has passed Suspect you should be fine.

    OP has just left their employer of 6 years. He/she didn't leave 6 years ago 😅

    • 

      Melb69 on 14/08/2020 - 11:05

      Ok Totally miss read it for time left, so yes read contract. Would be at least a year before any contact. Or if on good terms he can try asking employer if they are ok with talking to a particular client. When the director of a previous office left he was allowed to take a client with him.

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  whooah1979 on 14/08/2020 - 10:09

  +3

  Tell the clients that you're leaving the company to start your on business. It isn't your fault if they drop their current provider and follow you on their own accord.

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    RM on 14/08/2020 - 11:06

    Agreed - just drop a casual note of information only and not seeking any business. You could also just write that you are no longer employed with the company and the ones who want to be in touch would reply asking for more information.

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  [Deactivated] on 14/08/2020 - 11:22

  Sometimes it can be better forgetting where the bodies are buried

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  Hardlyworkin on 14/08/2020 - 12:09

  Hello member from 2 minutes ago. Maybe spend your time looking for your contract rather than signing up for a new account :)

  If there is a restraint clause in there get some legal advice or contact them anyway and hope for the best.

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  Clarkos117 on 14/08/2020 - 14:42

  thanks for the advice, i will seek some legal advice and try and get the contract