can i set up this company?

[tyler_d]

I have just quit my job at a design company and now i want to set up my own design business but my contract states:

"In the event of your leaving the company or your employment is otherwise terminated, you will undertake that for a period of twelve months, after the date of your departure for the company, you will not be part of, join any company or associated company, which my be in competition with the company."

Is there anyway out of this?

 

[ClubMan]

Such non compete clauses are largely unenforceable. Get legal advice if you like (I did years ago and that was the gist) but unless you are stealing IP or obviously reusing your former employer's tools/technologies/other info etc. then it is doubtful that they can do anything about it. They cannot prevent you from earning a living.

 

[Gulliver]

Largely unenforcable, but I would advise you not to target customers of your old company during that period of 1 year.

Agree with Clubman that you cannot be prevented from earning a living.

But how would you define "in competition". If you set up on the other side of town, or in the next county, are you in competition. If your offering is not identical, are you "in competition".

 

[ClubMan]

Largely unenforcable, but I would advise you not to target customers of your old company during that period of 1 year.

I agree - it might be prudent not to do this if you were planning on poaching clients. In addition if you were poaching clients based on information gained while working for your ex-employer then you might be on dodgy ground. Get independent, professional (legal) advice if you are in any doubt.