Can't work for another company in airline industry for 3 months - enforceable?

Some_randomer

So a family member started a new job with an airline in Dublin about a year ago, moving home from abroad. Their contract states they have to give 3 months notice if/when they quit, and they can't work for another airline for 3 months after they finish.

Is this legal and enforceable by the airline? Obviously the person signed the contract knowing these details, but they now want to leave as it's a toxic environment. Has anyone ever been in this situation?

Augme

Yes, contracts are enforceable and yes the terms are legal.

alias no.9

Technically enforceable but not practically. I can't imagine enforcement proceedings ever happen outside of senior executives who are party to very sensitive information.

sugarman20

https://www.boards.ie/discussion/2058321989/cant-work-for-another-company-in-airline-industry-for-3-months-enforceable

Highly unlikely that this would ever be enforced unless they are in a very senior position and if they were in a very senior position it wouldn't be for 3 months.

Masala

Will he get 3 x Months pay on leaving to ensure he is not 'out of pocket' ??? I think its called Gardening Leave.

Can't see how a previous employer can expect an ex-employee to remain penniless for 3 months after leaving them. its not easy for employees to switch professions/ move into other industries. Sounds like a restrictive practice to me... and couldn't see it holding water if no compensation is involved.

Donald Trump

It would be unenforceable on a constitutional basis if it impinged on your right to earn a living.

3-months would be unlikely to meet that threshold by any reasonable stretch of the imagination

There is plenty of case law on it. Some cases involving more specialised roles such as pharmacists etc

The Continental Op

Looks like good info here https://www.peninsulagrouplimited.com/ie/guides/restrictive-covenants-in-employment/ it might be worth taking legal advice as its possible that restricting employment with any other airline (if thats what it says) is overly restrictive and unenforceable.

Princess Calla

From what I've seen in these situations as soon as you hand in your notice you're gone with immediate effect.

You will still get your 3 month's pay , so you'll be on "gardening leave"

Some places are more strict than others. Obviously depends on industry but I have heard of people being escorted to their desk by security, absolutely no logging back into the system , just grab your personal effects and away.

If they'd a company car, keys left at reception... taxi home.

Depends on the culture of the place but you know what you're getting into when you sign the contract.

Strumms

Long notice periods are commonplace in aviation / airline industry. The process of hiring… from advertising, interviews, selection, Garda background checks, avsec training to whatever the in house job training encompasses is a pretty lengthy process. Months in achieving a fully hired and trained individual…

the 3 months of not working in aviation ? I’m no legal expert but that can’t be above board…

Jim2007

https://www.boards.ie/discussion/2058321989/cant-work-for-another-company-in-airline-industry-for-3-months-enforceable

Nobody can tell you if it is enforceable until it is adjudicated upon and whether it even gets to the point really depend on the employer and whether they feel it is worth defending their rights.

With these things it is always difficult to know if these are just standard terms the employer puts in all the contracts they write or if they were included particularly in this contract because the employer felt there were rights they needed to protect or not. If the latter then you can expect they will at least make an attempt to enforce it. If not then they may have no objection to releasing your friend from the terms of the contract.

witchgirl26

Non-compete clauses are usually pretty standard in a lot of industries but the level to which they're enforced depends wholly on the nature of the role of the individual. If someone is cabin crew for instance, they probably won't have a lot of insider knowledge that they'd be bringing across so they are unlikely to enforce the clause. If it's someone in marketing, however, they may have knowledge of upcoming promotions etc. In that case, the most likely thing to happen would be garden leave as soon as notice is handed in whereby the employee is essentially escorted from the building & hands back all company property immediately so that they can't bring company IP with them. The 3 months are still paid but it also fulfils the 3 month gap requirement.

The legality would probably depend on whether it would fully impede a persons ability to work leaving them at a disadvantage (i.e. the clause is so restrictive that it affects getting another job), if the terms were considered unreasonable or if it's enforced after working out a notice period whereby there's no IP that could reasonably be thought to transfer. Those are all areas whereby the clause has been challenged & won.

FlipFlopAgain

Google "Peter Bellew Ryanair Court Case" or something similar. He was a very high level exec who left Ryanair to work for Easy Jet. Ryanair invoked non-compete clause. Judge ruled that it was invalid.

Also search for Hernandez vs Vodafone Ireland. Another case where judge ruled non-compete clause invalid.

IANAL, but I would think it unlikely that his non-compete clause would be enforced.

TaurenDruid

Taxi drivers have won cases to be able to retain their PSV licences, despite Garda objections based on the drivers' convictions for serious offences, because of the right to earn a living. Your family member's contract might be legal (I doubt it) but the non-compete clause is unenforceable.

Squatman

https://www.boards.ie/discussion/comment/121350447#Comment_121350447

https://www.boards.ie/discussion/comment/121350447#Comment_121350447

gardening leave is for the notice period. what this contract is looking to enforce, is an additional 3 months on top of the notice period.

blackbox

Would another airline company give a job to someone who was flouting the Ts & Cs of their previous employer?

Princess Calla

https://www.boards.ie/discussion/comment/121422889#Comment_121422889

If they head hunted the person they would I'm sure.

Oscar_Madison

https://www.boards.ie/discussion/comment/121422889#Comment_121422889

Yeah that’s what I was thinking- it sounds like it’s possible that all or many airlines might have similar restrictions essentially making it impossible for someone to jump ship quickly I.e an unwritten agreement between certain airlines not to hire someone from a rival company within a certain time period.

Will be interesting if the person in question gets challenged on this at their next job interview-

artanevilla

https://www.boards.ie/discussion/comment/121422889#Comment_121422889

Absolutely.

witchgirl26

https://www.boards.ie/discussion/comment/121420523#Comment_121420523

The first one you mentioned was a really specific problem whereby it would have been incredibly difficult for Peter Bellew to get a job in his area of expertise because of the non-compete clause. Essentially making it impossible for him to earn a living. Also the length of time involved in the non-compete clause came into it too - I think it was over a year which was deemed to be excessive.

Someone in my organisation, high up level, left recently to go to a competitor. They'd would have been privy to important trade information for the business so gardening leave for the 3 months notice.

That's why most senior positions would have a 3 or 6 month notice period so that the gardening leave can be enforced if necessary, person is still being paid & they can still reasonably take up another employment.

TaurenDruid

https://www.boards.ie/discussion/comment/121423215#Comment_121423215

Yeah, the "gardening leave" is enforceable - for want of a better term - because it's literally the notice period and the person is being paid. "And you can't work for a competitor for another three months after your notice period is finished and we're no longer paying you" - not so much.

witchgirl26

https://www.boards.ie/discussion/comment/121423311#Comment_121423311

Yes but the OP doesn't say that the 3 months is after a notice period is worked. They just say that it's 3 months notice to leave & they can't work for a competitor for 3 months. Most likely they'd be asked when quitting if they're going to a competitor & if they say yes, they'll be put on gardening leave. That would be 3 months after finishing the role.

3DataModem

Non compete clauses are generally non-enforceable in the EU, as a poster said above this is particularly the case in Ireland as it is a constitutional issue, and this has been partially tested in court in Ireland.

Some companies in the EU get around this by paying you a smaller 'consideration' for the non-complete period, which makes it theoretically more enforceable, but this has not been tested in Ireland (to my knowledge).

One thing that has not been tested is whether this constitutes an illegal contract term that enables the rest of the contract to be set aside. My own legal advice 15 years ago on this topic was that it was very very unlikely to enable other post-termination obligations to be set aside, unless really badly worded.

ted1

https://www.boards.ie/discussion/comment/121350447#Comment_121350447

the argument is they can work in a different field