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Alex J.
Alex J., Litigator
Category: UK Employment Law
Satisfied Customers: 3522
Experience:  LLB, LPC, DELF
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Briefly, I am a director and shareholder of an Financial

Customer Question

Briefly, I am a director and shareholder of an Financial Advisory company. I am considering leaving and inevitably many clients will want to leave with me. There was a contract of employment produced but I inadvertantly never signed it. Am I still bound by the contract, bearing in mind my status in the company.
JA: Thanks. Can you give me any more details about your issue?
Customer: The contract mentioned has a non dealing clause (12 months) attached to it. If one is not signed will they be able to enforce any restrictions.
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Submitted: 11 months ago.
Category: UK Employment Law
Expert:  Alex J. replied 11 months ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Can you give me the exact wording of the non dealing clause? What will you do with your shares?

Customer: replied 11 months ago.
Deal with any customer or client of the company or group, where the customer or client of the company has been a customer
or client in the 12 months immediately preceding the termination of employment of the Director and with whom the Director has had business dealings within the previous 12 months.
Customer: replied 11 months ago.
The shares are not listed and therefore I would return them when I leave. The agreement also states that on me leaving I have to return them at par value, which I am assuming are £1.
Expert:  Alex J. replied 11 months ago.

Hi, Thank you. Ultimately as this clause restricts your ability to work in order for it to be enforceable it would have to properly executed, i.e signed and dated. Do any of the other employees have this restriction?

Customer: replied 11 months ago.
My fellow director will have the same agreement. I would not be wanting to leave with him as his laziness is one of the reasons for leaving. Whether they have a signed copy in relation to him, I am unsure.
Expert:  Alex J. replied 11 months ago.

Hi, Thank you. I think he would struggle in court to enforce a restrictive covenant in an unsigned employment contract. Anything that restricts trade is generally against public policy. For a court to enforce a restrictive covenant it has to be properly executed and have a commercial purpose. If you have not signed it, it would be difficult to convince a court that you accepted it. Kind regards AJ

Customer: replied 11 months ago.
Ok thanks for your help Alex .
Expert:  Alex J. replied 11 months ago.

If I can assist any further please do not hesitate to contact me. Kind regards AJ

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