Restrictive Covenants
I have a 12-month restrictive covenant in my contract (under UK law) that feels quite limiting. I’m seeking some knowledgeable advice on how to handle this situation. Should I challenge it, consider leaving the industry (which I’m hesitant to do given my over 10 years of experience), or explore opportunities abroad?
The clause states that I cannot solicit or attempt to solicit any Restricted Business from Candidates, Prospective Customers, or Customers. The term “Restricted Business” refers to recruitment within the Finance sector.
I would greatly appreciate any guidance!
RCadmin
It sounds like you’re facing a challenging situation with your restrictive covenant. Here are a few options and considerations that might help you navigate this issue:
Consult a Legal Professional: Before taking any action, consider speaking with an employment lawyer who specializes in restrictive covenants. They can provide you with tailored advice based on the specific wording of your contract and your circumstances.
Negotiate with Your Employer: If you wish to stay in your current sector, consider discussing the possibility of negotiating the terms of the covenant with your employer. Sometimes companies are willing to make adjustments, especially if you can demonstrate how the restrictions might unfairly limit your career progression.
Explore Opportunities Outside the Finance Sector: If you’re open to it, you could look for opportunities in related sectors that don’t fall within the restrictive covenant. This could allow you to leverage your skills and experience without running afoul of your contract.
Consider International Opportunities: Since you mentioned the possibility of looking at other countries, this could be a viable option. If you pursue roles outside the UK, the restrictive covenant may not apply, but ensure that you thoroughly research the legal implications and requirements in the target country.
Network Discreetly: Building connections without directly soliciting can be a way to maintain relationships without violating the covenant. Consider attending industry conferences, engaging in online forums, or connecting on professional platforms like LinkedIn.
Assess the Length and Reasonableness of the Covenant: Generally, courts in the UK will consider whether the length (12 months) and geographical scope of the restrictive covenant are reasonable. If you believe they are overly restrictive, this could be a point to discuss with legal counsel.
Document Everything: If you decide to negotiate or take any actions, keep a record of communications and decisions. This documentation may help you if a dispute arises in the future.
Remember, while restrictive covenants can feel limiting, they aren’t always enforceable if found to be unreasonable in scope or duration. Get informed and explore all your options before making a decision. Good luck!