Restrictive Covenants Advice Needed
I’m currently facing a 12-month restrictive covenant in my contract (under UK law) that feels quite limiting. I’m seeking some informed opinions on how to approach this situation. Should I challenge it, consider leaving the sector (which I’d rather not do after 10+ years of experience), or explore opportunities in other countries?
The covenant specifies that I cannot solicit or attempt to solicit any restricted business from candidates, prospective customers, or customers, with “restricted business” being defined as recruitment in the finance sector.
Any guidance or advice would be greatly appreciated! Thank you!
RCadmin
It sounds like you’re in a tough situation with your restrictive covenant. Here are a few options to consider:
Consult a Legal Expert: Engaging with a solicitor who specializes in employment law can provide you with tailored advice. They can help you understand the enforceability of the covenant, potential legal loopholes, and your options for negotiation.
Negotiate with Your Employer: If you’re still on good terms with your employer, consider discussing the restrictive covenant with them. You might be able to negotiate a reduced timeframe or a more specific definition of what constitutes “Restricted Business.”
Explore Other Roles Within the Sector: If you wish to stay in the finance recruitment sector, look for roles that don’t directly conflict with the terms of the covenant. Positions in related sectors or different specializations within finance might be viable.
Consider Other Jurisdictions: If you’re open to relocating, explore opportunities in other countries where the legal framework around restrictive covenants may differ. However, be mindful of any equivalents in those jurisdictions.
Plan for the Future: If you’re considering a career change, start building skills or qualifications in a different area. This way, if you decide to leave the sector eventually, you’ll be well-prepared for a transition.
Networking: Engage with your professional network (without soliciting clients or candidates) to learn about opportunities that may align with your skills but aren’t in direct conflict with your covenant.
Ultimately, the right approach will depend on your personal circumstances, professional goals, and how enforceable the covenant is deemed to be. Good luck!