Radius clause issue

Hunibun90

New Member
#1
Hi I’m just looking for some advice,

I am currently a full time beauty therapist and have worked at my current salon for 5 years now, I have been in the industry for 8 years and I now feel it’s the right time for me to go self employed and be my own boss!

I have been looking for a while now to find the right place for me to do so and the perfect place has now come up.
The only issue is, I’ve checked my contract and I have a radius clause of 3 miles for 6 months, now this salon is in the 3 mile radius (2.8 miles) but the distance to get there is actually 3.8 miles.



I just wanted to know whether this is something that is enforceable?

Thanks xx
 

Haircutz

Super Moderator
Staff member
#2
It’s unlikely to be enforceable because a 3 mile radius is very wide as usually half a mile is the norm and a mile at a stretch.
Also, if it’s poorly drafted (self drafted), it won’t be enforceable at all, regardless of the distance mentioned.

Can you copy the EXACT wording of the full paragraph containing the clause for us to read?

Also, to enforce the clause, the salon owner has to take you to court and prove that her business has suffered loss because of where you’re now working.

In the majority of cases, restrictive clauses to limit your employability elsewhere are not enforceable.
 

Hunibun90

New Member
#3
Thanks so much for your help.

it states
“ after leaving employment, you will not trade or open premises or canvas customers within a 3 mile radius for a period of 6 months. In addition you must not utilise the salon name for any promotional purposes.
Solicit or canvas the custom of any person or company who at any time during the 6 months prior to the termination of your employment was a customer of the company”
 

Haircutz

Super Moderator
Staff member
#4
Thanks so much for your help.

it states
“ after leaving employment, you will not trade or open premises or canvas customers within a 3 mile radius for a period of 6 months. In addition you must not utilise the salon name for any promotional purposes.

is this how this sentence starts or is there a bit missing?
Solicit or canvas the custom of any person or company who at any time during the 6 months prior to the termination of your employment was a customer of the company”
I think she’s adapted the wording from something else and attempted to redraft it herself.
It doesn’t make much sense and I think she’d seriously struggle to get a court to support it.

When will salon owners learn that it pays to use qualified professionals for anything other than a very basic contract?
 

Haircutz

Super Moderator
Staff member
#5
For the clause to be enforceable, the salon owner has to prove that it is:

reasonable
necessary to protect legitimate business interests; and
of a duration no longer than is necessary to protect those interests

However, they cannot be used as a restraint of trade. If you try to deny an employee the right to make a living in their chosen industry or profession, this will be taken seriously by the court. For example, an employment contract that imposes a blanket ban on a person working for a direct competitor, even for a short period of time, is unlikely to be enforced.

Good luck with your new venture! :)
 

102020

New Member
#6
Normally the distance is taken “ as the crow flies” so in a straight line .
Eg on a map you do to scale a 3 miles radius around your present place of employment .
Is it enforceable?
Againdepends on the contract . When I had a salon mine were with the NHF and they were watertight and on one occasion they were put to the test and it was upheld .
 

Hunibun90

New Member
#7
For the clause to be enforceable, the salon owner has to prove that it is:

reasonable
necessary to protect legitimate business interests; and
of a duration no longer than is necessary to protect those interests

However, they cannot be used as a restraint of trade. If you try to deny an employee the right to make a living in their chosen industry or profession, this will be taken seriously by the court. For example, an employment contract that imposes a blanket ban on a person working for a direct competitor, even for a short period of time, is unlikely to be enforced.

Good luck with your new venture! :)
Thank you you’ve been a great help :) I’m really excited but nervous at the same time!
 

TheDuchess

Well-Known Member
#8
I wouldn't worry about being sued for breaking your contract - it costs money to write solicitors letters. I've done it once to protect myself in a difficult situation. It cost me £1000 and I decided not to go to court because that starts at £6k in legal costs. My contract was enforceable but I hadn't lost £6k of business.

If your boss went to a solicitor because you've set up in business 2.8 miles away as the crow flies but 3.8 miles in journey distance - no solicitor will agree that she has a better than 50% chance of winning. You need a 51% chance for legal expenses insurance to cover you and for it to be worth the cost as well as worth the risk.
 

Hunibun90

New Member
#9
I wouldn't worry about being sued for breaking your contract - it costs money to write solicitors letters. I've done it once to protect myself in a difficult situation. It cost me £1000 and I decided not to go to court because that starts at £6k in legal costs. My contract was enforceable but I hadn't lost £6k of business.

If your boss went to a solicitor because you've set up in business 2.8 miles away as the crow flies but 3.8 miles in journey distance - no solicitor will agree that she has a better than 50% chance of winning. You need a 51% chance for legal expenses insurance to cover you and for it to be worth the cost as well as worth the risk.
Gosh that’s expensive! Thanks so much for your help
 
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