[pbb76]

I have a friend (just the one!) who has handed his notice in at a studio. They want him to sign a document to say he wont speak to any of their current clients.

I doubt they have any legal hold like this - morally maybe, but not legal. It wasnt in his original contract, just something they are asking him to sign now before he leaves.

He wants to leave on good terms, but isnt keen on signing this as he is going freelance and gets on well with a lot of the clients - though he wont aggressively approach them, there is a feeling they may follow him.

Anyone been in this situation?

[oakleaves]

I know this happens all the time but dirty tactics if you ask me.

Your friend should get his own clients.

Morally / Shouldn't

Legally / Shouldn't if he signs the document

This post has been edited by oakleaves: 28 September 2011 - 03:07 PM

[pbb76]

Yea kind of agree. As I say, he isnt going to approach them (well, thats his plan anyway) but some may want to stick with him.

I dont think he should sign anything though - it wasnt in his contract and only reason they want him to sign it now is because they are nervous. But he under no obligation or law to sign it IMO??

[oakleaves]

I would think the company should have made him sign something like this before he started working there?

Too late now, unless they have some kind of clause whereby he cannot leave because of it.

If he doesn't sign, then the 'leaving on good terms' may go out of the window.

[porkchops]

They can't force him to sign anything here, but he's going to have to decide whether he wants to leave on good terms or have the opportunity to pursue/keep working with his current clients. Don't think there is a way he can have both here.

[pbb76]

Yea its going to be awkward to leave on good terms without it.

I suggested a compromise of a 6 month 'hands off' period and see how it goes. Dont know if he will use that though.

Interesting though... dont know what I would do as an employer. Too be honest, I think it says a lot that they are worried, I think I'd have more confidence in my ability in keeping clients then worrying that they would go with a freelancer (if I'd given them good service as a company).

This post has been edited by pbb76: 28 September 2011 - 03:50 PM

[Spitfire]

If it was me, I'd try and cut a deal with the company. Make a counter offer - agree, for a limited time (like 6 months), not to initiate any contact with the clients but if the client initiates it, the company gets a cut of his earnings (either a flat fee or a percentage). Sort of like a 'finders fee' as he wouldn't have access to the clients if he hadn't of worked for the studio.

[pbb76]

Tis another good idea!

[Glowbridge]

Non-Compete's are commonplace but a not-so-stupid company would have had it in his original contract. They are perfectly within their rights to ask him. They cannot use any kind of threat to force him to sign it, for example holding back leaving packages or bonus' he's due.

It's down to him. The company has made their choice and is clearly picking the clients over a soon to be ex-employee. Also known as 'The Right and Only Choice'. Morality has nothing to do with it, it's business and if you chose the other way you wouldn't be in business very long.

Spitfire's suggestion is a good one, counter-offer a time limit. I would avoid a 'one way' client contacting him clause, that is just asking to be dragged around trying to prove your advertising never influenced their decision and all that crap.

[MikeChipshop]

Stuff morality!
If the guy is good enough that the clients want him and not his previous employers then well done him.

A couple of points to consider... The company should have had him sign something like this in his original employment contract and the company should be trying to hold on to him by upping his pay or offering better contract terms. Something he should think about.

If i was him i'd be open with the company i was leaving and tell them you're going to be taking work on from whom ever approaches him. If the company has any morals it will not try to stop him and should not lead to leaving under bad terms.

[oakleaves]

maybe that's why I'm so poor

[oakleaves]

my word you guys are cut-throat!!

[rallport]

However, if he doesn't sign the contract will he/she still get a good reference - which is worth a lot more than a couple of clients.

Personally, I would never approach existing clients, but at the same time I'd be really hesitant at signing something like this.

The idea of saying he won't approach them for a set period is good though.

[gay design]

If he signs the NO-Compete document he is liable to it "Legally" which the company should have done and signed by the contractor/employee in the first place before hiring him. There will only be two things that will be stressed out of this employer/employee dispute and that will be failure on the employer or the employee to do his thing before starting a contract.

[brightonmike]

AFAIK

If he approaches the clients and "steals" them, that's one thing.

If, without him doing/saying anything, a client voluntarily moves with him, then that's cool.