Competition clause with previous employer

[myfirstimportbusiness]

I recently left my company and started up by myself. I'm interested to know how restrictive my previous contract really is.

I worked in conferencing for the Oil & Gas industry and have 6 months' restrictions.

My restrictions state that:

• I cannot provide services to previous customers which are in competition with my previous employer
• I cannot be involved in any capacity with a company that is (or intends to be) in competition with me previous employer

So how far does this stretch? I have been led to believe by my previous employer that I cannot touch Oil & Gas globally for 6 months - but this seems overly restrictive.

Previous products are focused on supply chain and transportation. If I wanted to create a product on well decommissioning, an area where the previous employer has no presence, can this count as being in competition with my previous employer? There will still be overlap in customers I suspect but it is a completely different topic area and geography.

 

[ethical PR]

Have you spoken to an employment lawyer about this? Probably best to invest in an initial consultation with them and they can provide you with legally binding advice based on your contract.

 

[TotalWebSolutions]

Agreed, seek legal advice to see how realistically the clauses can be imposed. You can occasionally read about ex employees taking former employers to court using 'right to earn a living' as a reason for dropping the clause...

 

[cjd]

You can't be banned from working in the entire global oil and gas industry, that's absurd and if it's written in that way it's a totally useless clause and means you got lucky. But if it's specific and reasonable given the seniority you had in the last company, then it's a different answer.

You need professional advice. Bear in mind, that even if it's finally decided that it's an unreasonably restrictive clause, they can still make life difficult for you - it's far better to advise them of your intentions and ask for a letter saying that they have no objections. If there really is no competitive conflict, they'll agree. If you've fallen out with your manager, it may be best to approach HR.

 

[Employment Law Clinic]

So how far does this stretch? I have been led to believe by my previous employer that I cannot touch Oil & Gas globally for 6 months - but this seems overly restrictive.

And it may or may not be overly restrictive. There are numerous factors that will influence that, including the precise terms, and the compensation you received for agreeing to these - your previous pay package. Without considering the employment contract in its entirety, impossible to advice - but it's certainly feasible that such clauses can apply even without a geographic restriction, it's not unheard of, and many factors will decide.


Karl Limpert

 

[MOIC]

I recently left my company and started up by myself. I'm interested to know how restrictive my previous contract really is.

I worked in conferencing for the Oil & Gas industry and have 6 months' restrictions.

My restrictions state that:

• I cannot provide services to previous customers which are in competition with my previous employer
• I cannot be involved in any capacity with a company that is (or intends to be) in competition with me previous employer

So how far does this stretch? I have been led to believe by my previous employer that I cannot touch Oil & Gas globally for 6 months - but this seems overly restrictive.

Previous products are focused on supply chain and transportation. If I wanted to create a product on well decommissioning, an area where the previous employer has no presence, can this count as being in competition with my previous employer? There will still be overlap in customers I suspect but it is a completely different topic area and geography.

Were there only 2 clauses?

The words "in competition" in both clauses can cover a very wide area.

Seek clarification first.

 

[The Byre]

So far, you have told us that you work for an AV company, supplying conference services to the oil industry.

I cannot provide services to previous customers which are in competition with my previous employer.

That would imply, if what you say is correct, that you may not work for former customers of your previous employer, insofar as they are now in competition with your previous employer.

I cannot be involved in any capacity with a company that is (or intends to be) in competition with me previous employer.

You may not work for or otherwise be commercially associated with any company that provides services similar to those provided by you previous employer (i.e. the AV business for the oil-gas industry).

As has been stated above, everything depends on the details, but if what you say reflects the truth, none of the above seems to put a blanket ban on the oil industry, but on the provision of AV services for the oil and gas industry.

However, if your only skill and education is in the AV industry and you live in Aberdeen, where the only user of AV services is the oil and gas industry, then this may be regarded as an over-restrictive contract. As Goethe wrote, "The devil is in the details."