In breach of contract after redundancy

SunnySouth

Registered User
Messages
10
Hi,

I'm curious in finding out whats the worse that could happen in the following scenario:

Employee (John for example) is made redundant (by Company A) and signs a letter of redundancy which contains a compete clause preventing John from working for a certain client for a period of 6 months. Two months post redundancy John commences work with the certain client as a contractor. Three and a half months into the six month period Company A is now looking for the FULL redundancy payment back, if not received within a certain time frame Company A will persue other actions.

Some background information regarding Johns position, prior to joining Company A, John worked in Dublin but was from the country and wanted to move away from Dublin. Company A, based in Dublin, were seeking someone to work remotely on a clients site in the country. John being from the same county as the client, interviewed for the position and got the job. John made it verbally clear that he was not interested in working in Dublin and was only interested in the position because of its location. Two and a half years later Johns position is no longer viable at the client site and Company A gives him the choice of a job in Dublin or redundancy. John took the redundancy but would have taken the job if some flexibility existed with the new role but Company A were not fore coming.

John took redundancy hoping to find alternative work closer to home, however due to economic climate and the industry which John works in, employment oppurtunites are far and few between.

With all of this in mind, what is the worse that can happen to John ? Loose the redundancy payment ? Or Company A get an injunction even though John is nearly 4 months into 6 month period ? Anything else ?

Any info much appreciated.
 
Company A cannot legally put a "no competitor / confidentiality" clause into a redundancy agreement because it is the role that is redundant within the company, not John and such a clause could prevent John seeking suitable employment and earning his living in his former role, by limiting the number of potential employers John can work for. (IMHO, not an expert).