contracts!

Re: contracts!

Louise6732 — Sun, 06 Jun 2010 17:38:33 GMT

BVA have a free legal advice service for members which my help:

http://www.bva.co.uk/Legal_advice_line.aspx

''They can guide you in the right direction by giving professional and completely confidential advice on disputes over
• contracts of employment
• maternity rights
• working time regulations
• boundary disputes
• any other matter''

Seems like it would be helpful to get in touch with them

Re: contracts!

Anthony Todd — Sun, 06 Jun 2010 00:44:15 GMT

[quote user="cmj"]I suppose its all about what is reasonable and this is what a good solicitor will be needed for to judge.[/quote]

The trouble with legal advice in this situation is that it will be just an expensive opinion, and a pretty vague one at that, as only a judge can rule. Partnership law is a really vague area and virtually everything has to be tested in Court.

AFAIK your previous employers will have to prove actual financial loss. [they may actually gain when you go.......]

AFAIK this clause is rarely tested in court; the last time was between estate agents and the zone was judged to be pretty small.

You are less far likely to get into litigation if you are completely up front and inform your employers of your plans in advance and, of course, do not try to induce or influence their clients in any way. Of course, do everything in writing and keep all documents relating to the matter.

Oh, and don't, as is "normal" practice in some business circles, copy the customer list and remove it..... Judges judge as well as rule on law and if you appear to be a "bad egg" then your chances are less, in the unlikely event of it going to trial.

Unless your partners are naive or stupid I'd be very surprised if they bothered to seek damages.

Re: contracts!

chris Jones — Sat, 05 Jun 2010 20:40:49 GMT

thanks for the replies, lots to think about

Re: contracts!

Rob Loxley — Sat, 05 Jun 2010 20:04:43 GMT

[quote user="cmj"]the covenent covers a geographical area rather than a distance and states the west of the county and for a period of 2 years ![/quote]

You probably want a very 'aggressive' clause like this from your point of view, as it's so wide and long as to be (likely) completely unreasonable and therefore unenforceable!

Re: contracts!

chris Jones — Sat, 05 Jun 2010 19:08:21 GMT

best get some legal advice then.

it is a rural practice of 5 vets and I have been there 6 years, I dont think many if any clients would move as they are usually bonded to a practice rather than the vs.

problem is most practices have these restrictive covenants on the contracts and it is impossible to have it taken out of the contract before you sign it.

it would be restricting your right to work when you leave because in some instances you become bonded to an area and therefore if you leave that practice you have to leave the area which in my view isnt fair especially as I have lived in this particular area my whole life and dont really want to move away. i suppose I could locum for 6 months elewhere then come back!

the covenent covers a geographical area rather than a distance and states the west of the county and for a period of 2 years !

Could cause problems so as you say I will get legal advice.

thanks

Re: contracts!

Rob Loxley — Sat, 05 Jun 2010 18:49:19 GMT

[quote user="cmj"]In my contract it states that after I leave I can't work within a certain distance of the practice, in this case it covers half the county. Could this stand up in court or not.[/quote]

Having discussed this with an employment lawyer relative before last moving jobs:

Restrictive covenants can be legally enforceable as long as they go no further than is reasonably necessary to protect your employer's legitimate business interest , but the onus is on your former employer to show this to a court.

I.e. they must be reasonable to be enforceable - usually such post-termination restrictions are written in terms of timescale (and what is reasonable may vary depending on how long you've worked, whether you're a partner etc., but 6 months is a common rule-of-thumb max) and distance covered (usually would be looked at in terms of overlapping catchment areas of practices which may vary depending on whether city or rural practice); but also in terms of what job you are doing (e.g. if you moved from small to equine practice, or general practice to referral/OOH clinic then it would be hard to prove it protected any business interest).
And they must protect a legitimate business interest - how much of your employer's client base are specifically 'bonded' to You and might therefore be tempted to follow you - are you maybe the sole vet in a branch practice and a large number of people would like to follow you, or one of 10 vets etc.?

[quote user="cmj"]could they stop me, sue me or not[/quote]

If the covenant was reasonable they could enforce it through the courts, via an injunction to stop you working, and possibly even against your new employers for inducing a breach of contract (if your new employer knew about or was told by your existing employer about such restrictions and still employed you), and ultimately claim damages.

Does your contract state a duration for which the restriction applies - if not then I cannot conceive it being enforceable. Also, do you have an idea of what the majority of the practice catchment area is in relation to the stated geographical restriction?

In summary, if you've agreed to a restrictive covenant and intend to break it then I'd suggest some good legal advice first!

Re: contracts!

Malcolm Ness — Sat, 05 Jun 2010 18:18:56 GMT

Exclusion clauses can be enforced but only if they are "reasonable" both in terms of time and geographic spread. Unreasonable would be anything that prevented you working anywhere other than within your existing practice's main catchment area. A reasonable time for a partner selling up would be a year so for an employee it will be very much less.

Other than situations where a partner or practice owner have sold up, exclusion clauses are becoming an anachronism. Even if you went to work for the neighbouring practice, your current employer would be hard pushed to make anything stick.