Legal advise regarding a non compete

[The Raven]

Real left field topic but i thought someone here might be able to shed light before i attempt to seek legal advise.

 

So the Mrs was a saloon based hairdresser. She has a 6 month 5 mile non compete clause. She left a few months back and gone moblie. Thus far shes stayed out the radius.

 

However the saloon was sold to new owners last night. Is the contract still enforceable?

[Dnk]

I'd have thought the contract was with the owners so if its changed hands then her contract would end

 

But thats just my lay mans take on it

[rider]

It depends if the contract was between your wife and the business or your wife and the former business owner. The contract heading should detail the partners to a contract and the signatures should state for and on behalf of if signed for a third party or business. If the business name doesn't appear anywhere then your wife should seek permission from the former owner to rescind the contract as she would still, technically be in breach of contract even if it wasn't transferred to the new business owner.

[Guest Budz86]

It's probably still valid as the contract (and thus non compete clause) was with the business, regardless of who owns it

 

 

[The Raven]

Ok i spoke to solicitor.

 

They say, that the contract wouldnt be enforceable by the new owners. However the old owner who still works there could if she wanted to. They seem to think this is unlikely. Even then they are questioning if the contract and radius is valid

[Pete]

Often non competes within a specific trade are unenforceable within a radius. If you're basically unable to get a job other than by moving house no court will enforce it as it's unreasonable unless the company is paying you garden leave to not work or relocation expenses (unlikely).

 

Lets be honest, the price of going legal for a hairdressing business is going to be prohibitive anyway - the owners would have to be rabid lunatics to do it.

[RobUK]

Often non competes within a specific trade are unenforceable within a radius. If you're basically unable to get a job other than by moving house no court will enforce it as it's unreasonable unless the company is paying you garden leave to not work or relocation expenses (unlikely).

 

Lets be honest, the price of going legal for a hairdressing business is going to be prohibitive anyway - the owners would have to be rabid lunatics to do it.

 

I’d say like Pete the non-compete isn’t worth the paper it’s written on, you can’t stop someone making a living!

[The Raven]

A quick google shows multiple cases being brought and won.

 

What you have to remember is these people have set customers that come to them every 4 weeks if you leave and take these customers your going to cost the salon a lot of money. The best you can get is a reduction in the area, or shorter term. 6 months and 5 miles seems to be acceptable. Of course if you lived in the middle of London or another big city it would be different.

[Bladerider]

Non-competes mean nothing if you really wanna get serious and go to court over it.

 

Hence why companies that such clauses would be worthwhile to tend to go down the long notice period route as that actually is enforceable, even if they get you out the building immediately they will effectively pay you garden leave until the notice period is up - Formula1 is a good example of this where they typically have a 1year notice for technical staff to safeguard developments for the following years car.

 

She can do what she likes pretty much.

 

J.