Legal Question in Business Law in United Kingdom

Clients and companies

We are setting up a company and have existing employee contracts with an existing company that does the same business. This states that we cannot solicit business from clients within 6 months of leaving. However, a number of our clients have expressed a wish to come with us when we leave rather than working with the existing company.

Can the existing company take legal action against us if these clients come with us?


Asked on 2/09/07, 5:13 am

1 Answer from Attorneys
Richard Howard Richard Howard & CO

Re: Clients and companies

A contractual term restricting an employee's activities after termination is void for being in restraint of trade and contrary to public policy unless the employer can show that it has a legitimate proprietary interest that it is appropriate to protect and that

the extent of protection sought is no more than is reasonable having regard to the interests of the parties and the public interest.

There is no guarantee for an Employer that any restrictive covenant will be enforceable and there are no general guidelines which can be specified as to what would be considered reasonable, for example in terms of time or geography. Each clause must be considered in each case by reference to the business needs of the employer imposing the restriction.

Therefore you need to get advice on the enforceability of your specific clause

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Answered on 2/09/07, 8:01 am


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