Breaking up is so very hard to do …
Too often we hear stories of organisations that yearn for a return to the 19th Century, when employers could do what they liked and the poor old employees could like it or lump it. Our attention was recently drawn to the issue of restrictive covenants. Basically these are conditions inserted into a contract of employment that typically seek to limit the activity and employment options of ex-employees for a period after termination. In certain circumstances there may be some legal justification in this, particularly with regard to product design and development information (like the secret recipe for Coca Cola, for instance). However increasingly these are being used as an attempt to handcuff employees to companies and make it difficult for people to ply their trade away from the employer. That is “You work for me or you work for nobody!”
The good news is that the legal starting point for this “cheap alternative” to earning loyalty is that they are invalid, especially if the main thrust is to limit competition in the market place, which is against the public interest. They are rarely upheld and the onus is on the employer to put up a good case to justify the terms on grounds of legality. Additionally, if the contract is ended unilaterally by the employer without due process (for example if the dismissal was unfair) all terms, reasonable or unreasonable are rendered void. Also any attempt to intimidate an individual in this way and restrict an individual’s right to earn a living is a potential breach of the individual’s human rights – which takes things up a notch from the employment tribunal
Here’s a couple of links (1) links (2) that pace out the turf
So what’s the problem with all of this if they are illegal anyway (most of them)? Well, they are only ineffective if the employee knows full well that they are. All too often people are intimidated by the legal prose and fear the consequences and outcome of the process and legal test. Bullying by contract? You bet. Ultimately you have to fear in the long run for companies that routinely apply these tactics. You have to wonder why they they need threats to counteract staff turnover. We at Capable Blog believe that talent needs nurturing and rewarding, and if you work for a company that doesn’t, leave, and tell your boss we told you to do it
What’s the alternative to handcuffs anyway? Well … try …
*Flexible working hours
*Decent holiday, sick pay entitlement, pensions and welfare facilities
*Proper investment in training and development
*Open and honest communication
*A thank you for a job well done
*Involvement in workplace changes and improvements
Come on all you old-timers, get with the program and …
… make is eeeeasy on yourse-e-e-e-elf …
Here’s a picture of some workers held by restrictive covenants. Check out their happy faces
This entry was posted
on Tuesday, November 6th, 2007 at 11:23 am and is filed under Leadership & Management.
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