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Janette Brooks
Member - 1 post
I would like some advice on restrictive covenents - my partner is currently emplyed by a retain chain which includes a clinical practice (Chiropody) - this is currently where he works. He is considering opening up his own business but is concerned about the restrictive covenants in his employment contract. His existing company is based in a town centre and he intends opening up also in this same town centre (there are no other similar businesses currently in the town). His restrictive covenant says he is not allowed to directly solicit his patients and that he cannot work for a ompetitor for 12 months after employment. My questions are obviously how much of this is enforcable. His patients have been coming to see him directly for years.
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Susan Sharp
Member - 2 posts
I used to work in a business line that also commonly included restrictive covenants but were actually rarely enforced. They are legal obligations and so can be pursued by your previous employer but quite often the cost of the legal action is sufficiently off-putting, plus the courts can interprete the covenant - ie not soliciting clients is a fair restriction but inhibiting your ability to work is unfair (it would depend on the likelihood of finding alternative suitable employment). There are ways and means around it - your ex-cleints can move to you without being direclty solicitied (and quite often if you have a partner in the new business this is how they establish the relationship) or you advertise 'strategically' and they decide to change.
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James Fairchild
Member - 210 posts
Definitely worth taking the contract to a good solicitor (who can give advice on business start-ups at the same time). Pay for an hour now may save a lot of hassle (and cost) later on.
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