Setting up a business with an employment clause in current employment contract,legal?

[malby]

Hi

I am currently thinking of starting my own small business, I am however a little worried about my current employment contract. My aim is to set up the business in my spare time, this will not in any way impact on my current role nor is there a conflict in interests as they are very different businesses.

I have just had a look at my present employment contract and it states the following:

”Your employment with the Company is on a whole time basis. You may not undertake any other paid employment, or hold a directorship in any other company without the explicit written consent of the company. Such consent will not be unreasonably withheld.”

Until I read my contract this evening I was under the impression that this was not possible (I thought that if this clause is legally binding it would effectively be enforcing slavery).

My question therefore is simple, can this clause in my present employment be enforced (or could I be lawfully sacked if they found out I had set up a small business in my spare time if I decided to)?

Thanks in advance!

[sprint]

I used to be a HR Officer! The clause is enforceable. Usually companies will not have a problem with you doing other things so long as you tell them. If you do not tell them and you go ahead you will be on dodgy grounds under code of conduct and the worse case scenario could be your dismissal under gross misconduct. I think you should tell them what you want to do, as if there is no conflict there shouldn't be a problem.

[hostingchick]

That clause is enforceable and it is not slavery. Now, if the contract said something like, you have to work for us in perpetuity (i.e., forever) then that would be slavery. All that contract says is you can't have another job while you work for us unless we give you permission. There's nothing wrong with that - they just want to make sure you're not going to be exhausted when you come in to work.

Also, the contract says that they will not unreasonably withhold permission. If you tell them that the business is completely different, that you will still be able to complete your work for them, then you should be fine

If they give you permission though, make sure that you have it in writing!

Good luck!

[M1ck]

I used to work for a very strict publice secor organisation. They wanted you to ask for permission in writing, you had to tell them,
(i) If there is going to be a conflict of interest
(ii) Would your second job, business impact adversly on the job you do for them.
(iii) Would you use your position with them or knowledge (i.e contacts) etc to promote the second job.
If the answer was no, they always said yes. (you do have to tell them all the above plus that you will manage your own resposibilities regarding tax etc)

[finvik]

yes, they will not force anything on you but its just not ethical to go and start something for you unless you have a written permission from the company
Vik