My daughter worked as a Contractor for a Company in the Fitness Industry. In September, she and another contractor had an idea to start their own part time business for fitness in early mornings/ late evenings outside the workplace.
They have a clause:
Exclusivity - The parties agreed that the Company has no exclusive rights to the services of the contractor. The Contractor shall be at liberty to perform the services of a similar nature or otherwise for persons or companies other than the company as Contractor, in its absolute discretion, thinks fit.
They informed the Company of what they were doing, the owner had no objections and thanked them for being professional and letting him know. At the end of September when the owner saw they had had got this going, he talked my daughters partner out of the business by offering him a managers position and then basically told my daughter if she didn't include him in her business he would phase her time out of his business and she would have no work. In addition in September a Member of his Gym saw her facebook page and approached my daughter when the classes would be, she did not approach any members at any time. He never attended a session, but my daughter is now being accused of stealing him in September. It never happened it was an open question on facebook that the owner never complained about till now.
She resigned, went away for 2 weeks and came back and continued her Fitness business she started. Now she has received a letter from him seeking restraint of Trade. Yes, she signed a contract with that clause in it, however, I think it's unreasonable it asks for 12 months, then 6 then 4 and a 10 km radius after he already agreed for her to do this business while she was working for him. I see two problems...he coerced her to resign or be phased out of her job and he already agreed to her doing this business before she left and the contract to me seems contradictory.
Any comments or opinions are appreciated
They have a clause:
Exclusivity - The parties agreed that the Company has no exclusive rights to the services of the contractor. The Contractor shall be at liberty to perform the services of a similar nature or otherwise for persons or companies other than the company as Contractor, in its absolute discretion, thinks fit.
They informed the Company of what they were doing, the owner had no objections and thanked them for being professional and letting him know. At the end of September when the owner saw they had had got this going, he talked my daughters partner out of the business by offering him a managers position and then basically told my daughter if she didn't include him in her business he would phase her time out of his business and she would have no work. In addition in September a Member of his Gym saw her facebook page and approached my daughter when the classes would be, she did not approach any members at any time. He never attended a session, but my daughter is now being accused of stealing him in September. It never happened it was an open question on facebook that the owner never complained about till now.
She resigned, went away for 2 weeks and came back and continued her Fitness business she started. Now she has received a letter from him seeking restraint of Trade. Yes, she signed a contract with that clause in it, however, I think it's unreasonable it asks for 12 months, then 6 then 4 and a 10 km radius after he already agreed for her to do this business while she was working for him. I see two problems...he coerced her to resign or be phased out of her job and he already agreed to her doing this business before she left and the contract to me seems contradictory.
Any comments or opinions are appreciated