Question:

I was with a company that had a contract with Vodacom. The company lost the contract (end September) and had to retrench approx. 150 employees due to the Lost contract (approx. 85% of total headcount).  I was employed in the “back office” for this account, which also went through a process of retrenchment, but the company decided that my position would remain and i was therefore not affected by the retrenchment process.

As the company operates in the field marketing area, there was a standard restraint in place which I signed as part of the entry documentation.

I approached the new company that won the contract and was offered a position. I subsequently resigned (negotiated a 2 week notice period, mutually agreed to), but obviously did not inform them of the new company (I gave them another companies name).

Old company has since found out where I am and have sent me a lawyer’s letter stating that I must resign.

What would you advise, as I have no intention of resigning and feel that under the circumstances (previous company had no clients bringing in revenue and I was concerned that i may be retrenched after a few more unsuccessful months of trying to get new clients).

Answer:

Restraints are extremely difficult to enforce and the law is in the employees favour. They will have to file civilly and it will be very costly for them. As long as you do not give out confidential info of your last company to the new one -don’t stress. I would reply that you will not resign and have left for reasons of stability and ensured continued employment after a large scale retrenchment process at the previous company.

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