Job offer from ex client

[Kirsty3248]

Hi, a client of my company recently gave 30 days notice to end their retained agreement. On the same day they offered me the job in house. I took 48 hours to consider, accepted the role and resigned my current position. I do have a restrictive schedule with the usual clauses, non solicitation, non compete etc. However the client is not a direct competitor, cancelled the retainer without any knowledge as to whether I’d accept the role and would have sort to recruit in house resource if I’d have turned the job down. My employer is saying I have breached my contract of employment and will be holding me to it. I have nothing bar one line in the non solicit clause that says I cannot “deal with a customer for 12 months after ending employment”. They are also saying I am benefitting from the relationship, ie my company introduced me and the client and now we’re benefitting. I am hoping that 12 months is unreasonable, that the sentence stating “deal with” is too wooly and does not mention employment with a customer/client? Do you feel that’s correct? Also I’m really unsure on the benefitting from the introduction they’re stating, does anyone have experience of that? Many thanks.

 

[WaveJumper]

Welcome to the UKBF I often wonder in the situations how people would feel if the boot was on the other foot ie its was your company and a member of the team had done the same

They were a client / customer of the company, the company did introduce you to the client / customer. Yes the client left but the company have know way of really knowing whether you resigning and them leaving were linked in any way ..... they only have your word on that, as I mentioned if the boot was on the other foot, what would you think.

Personally I would have discussed my intentions with my employer before resigning, but you are where you are now. The bottom line will be how much money they are prepared to throw at this to prove a point.

It will be interesting to see what others think of this and I am pretty sure they might say just carry on and deal with any action they take as it comes

 

[Newchodge]

Hi, a client of my company recently gave 30 days notice to end their retained agreement. On the same day they offered me the job in house. I took 48 hours to consider, accepted the role and resigned my current position. I do have a restrictive schedule with the usual clauses, non solicitation, non compete etc. However the client is not a direct competitor, cancelled the retainer without any knowledge as to whether I’d accept the role and would have sort to recruit in house resource if I’d have turned the job down. My employer is saying I have breached my contract of employment and will be holding me to it. I have nothing bar one line in the non solicit clause that says I cannot “deal with a customer for 12 months after ending employment”. They are also saying I am benefitting from the relationship, ie my company introduced me and the client and now we’re benefitting. I am hoping that 12 months is unreasonable, that the sentence stating “deal with” is too wooly and does not mention employment with a customer/client? Do you feel that’s correct? Also I’m really unsure on the benefitting from the introduction they’re stating, does anyone have experience of that? Many thanks.

Without seeing the full text of the contract it is impossible to give any view.

 

[fisicx]

@Kirsty3248 - if your old employer is prepared to take you to court can you afford to defend yourself?

The interpretation of your contract may well depend on who has the better lawyer.

 

[Mark T Jones]

The big question for me is - what does the new employer say?

Will they back you?

Non-compete contracts are always a bit hit & miss - I've seen them upheld & I've seen them thrown out. (mostly I've seen threats and letters with no further action)

It is likely that 12 months will be deemed to be excessive, but it can still be a load of hassle.

 

[pentel]

Hi, a client of my company recently gave 30 days notice to end their retained agreement. On the same day they offered me the job in house. I took 48 hours to consider, accepted the role and resigned my current position

I cannot “deal with a customer for 12 months after ending employment

My only concern would be that the company were still a customer at the time they offered and you accepted the job.

Once they were no longer a customer you would have been in a lot safer position.

 

[DontAsk]

My understanding is that they can only sue you for any losses they incur. Given they had already lost the customer, they may be on shaky ground.

 

[Frank the Insurance guy]

My understanding is that they can only sue you for any losses they incur. Given they had already lost the customer, they may be on shaky ground.

Correct - the old employer would need to show they have suffered a financial loss as a result of the actions of the employee.

I suspect the employers argument would be that this was all "agreed" beforehand - ie. that this was all underhand and @Kirsty3248 was involved and knew the customers intentions.

@Kirsty3248 - have you got a documented trail of when you were first approached by the customer to work for them? If this was after they cancelled the retaining agreement, you may be in a good position.

Also worth checking the contract for the definition of a customer - some contracts will say that this is any customer you have dealt with in the last 12 months (ie. they do not have to be a current/live customer!)

Unfortunately, you may need to spend money on legal costs, if the employer wants to take it further.

I suggest you seek legal advice (you may have this included free with your home insurance - have a look!).

 

[Kirsty3248]

Correct - the old employer would need to show they have suffered a financial loss as a result of the actions of the employee.

I suspect the employers argument would be that this was all "agreed" beforehand - ie. that this was all underhand and @Kirsty3248 was involved and knew the customers intentions.

@Kirsty3248 - have you got a documented trail of when you were first approached by the customer to work for them? If this was after they cancelled the retaining agreement, you may be in a good position.

Also worth checking the contract for the definition of a customer - some contracts will say that this is any customer you have dealt with in the last 12 months (ie. they do not have to be a current/live customer!)

Unfortunately, you may need to spend money on legal costs, if the employer wants to take it further.

I suggest you seek legal advice (you may have this included free with your home insurance - have a look!).

Hi the decision to cancel their retainer was made at a board meeting 3 days before the client met with our director, the client then gave notice and then offered me a job. I had no prior knowledge and it was all agreed before any job was offered to me. So the client had already given notice then offered me the job. I’m sure I will have to reply to a solicitors letter, I just wondered people’s views. Thank you. Ps top tip on the house insurance, I do have legal cover!

 

[DontAsk]

Hi the decision to cancel their retainer was made at a board meeting 3 days before the client met with our director, the client then gave notice and then offered me a job. I had no prior knowledge and it was all agreed before any job was offered to me. So the client had already given notice then offered me the job. I’m sure I will have to reply to a solicitors letter, I just wondered people’s views. Thank you. Ps top tip on the house insurance, I do have legal cover!

Let us know how it goes!

 

[Michael Barnes]

Speak with ACAS, this is precisely the kind of issue they're there to help with and it's completely free.

Contact us | Acas

Contact details for Acas, including phone numbers to call our helpline, training and other Acas services.

www.acas.org.uk

 

[HFE Signs]

How significant was the client to your ex employer? What do they risk losing by you leaving? If the losses are minimal they are more likely to let it go, if you have the potential to take customers or valuable knowledge with you they are more likely to pursue every option they have. They are really only interested in the damages to their business.

 

[WaveJumper]

How significant was the client to your ex employer? What do they risk losing by you leaving? If the losses are minimal they are more likely to let it go, if you have the potential to take customers or valuable knowledge with you they are more likely to pursue every option they have. They are really only interested in the damages to their business.

Crucial question if it was a significant part of their income they are going to be pretty miffed

 

[IanSuth]

we lost a court case on similar to this

We were a recruitment agency

A new company rang said "we want a salesperson", Consultant sent terms that were agreed in writing then went to visit this company to take a full brief and get a better idea.

During that meeting they were offered the job

They resigned and accepted that role and we sent an invoice on start day for a fee based on a % of starting salary as the role for a salesperson had been filled.

They refused to pay, we ended in court, the magistrate said "they are slimeballs, they have said they have done this before as they find recruitment consultants make good salespeople for them (digital marketing agency) therefore they never actually intended to use your services and as such a contract can't exist despite what is written, sorry"

We got nothing but took legal advise to rewrite our contract to define introductions to include any consultant/employee directly worked with in the preceding 90 days.

Courts tend to be loathe to make any ruling which might be seen as restricting someones right to work/make a living.

So unless your old company had something written in the their client contract with your new employee (in which case they bill them direct for recompense) there is little they are likely able to really do except huff and puff and insist you don't start until your notice period is worked out.

The legal beef is more likely between those 2 corporate entities and not with you

 

[JEREMY HAWKE]

Many years ago a reginal manager took the whole national book from the now defunct sameday courier company UK Today who were an arm of businesspost taken over by fed ex about 20 years ago .

They took him to court but pulled out the day before
The boy did a good job and built up a very big courier company

Maybe these agreements are not worth the paper they are written on

 

[DontAsk]

Many years ago a relative worked in market research. A colleague left and set up on his own. A few months later the relative joined him, taking all of his client base with him. It turned out he had never signed a contract with his old employer and so only had an unwritten employment contract. The old company could do nothing about it.

 

[Newchodge]

Many years ago a relative worked in market research. A colleague left and set up on his own. A few months later the relative joined him, taking all of his client base with him. It turned out he had never signed a contract with his old employer and so only had an unwritten employment contract. The old company could do nothing about it.

You need to be a bit careful with that. If no written contract were offered, that is right, but if one were offered and the employee just ignored it and carried on working in accordance with it, the law considers that the unsigned contract is valid. If the employee refuses to sign and states it is because they object to clauses xyz, the contract may be deemed unwritten.

 

[IanSuth]

You need to be a bit careful with that. If no written contract were offered, that is right, but if one were offered and the employee just ignored it and carried on working in accordance with it, the law considers that the unsigned contract is valid. If the employee refuses to sign and states it is because they object to clauses xyz, the contract may be deemed unwritten.

Many people temp somewhere for ages, get taken on perm and as they have become part of the furniture it gets forgotten they don't actually have a written contract with the employer.

Came across it loads of times when people said "I am off to start a new job next Monday" , company tried to demand notice and realised there was no written contract in place