Does Non-Compete/Notice Period kick in at signing or at start of employment? (question re: reneging)
I am probably going to consult a lawyer on this, but want to see if any community member has a feel on this issue as well.
I am currently sitting on a beach on a 6 month garden leave, having signed an offer (employment agreement) for another hedge fund 5 months ago as an execution trader. In the employment agreement, it outlines that if "following the termination of employment" of the new job, there will be a 2 month mandatory notice period (paid), followed by 6 month non-compete period (unpaid).
A better job opportunity has come around and I am considering reneging. Does anyone know if the notice period and non-compete for the firm I signed for is enforceable, keeping in mind that
1) the employment is stated as at-will
2) no money (signing bonus) has changed hands yet
In other words, for your run off the mill offer letter (not contract with fixed terms, or upfront bonus), are the notice periods/non-compete clauses effective at signing, or at start of employment? Is reneging consider "terminating" an employment, or just "cancelling" an employment that will never start?
I have no idea, but you'd probably be better served posting this in the hedge fund forum. A lot of the hedge fund guys frequent that section of WSO.
I would think not but best to speak with a lawyer. You don't know anything about the new firm or have any proprietary knowledge or intel that would serve you anywhere else yet so I wouldn't think the non-compete is applicable. As an aside though, and I'm not in the HF world so I may be way off base, but that sounds like an egregious and heavy-handed garden leave. Certainly, if it was paid I'd have no problem with it but 8 months seems like an awful lot for an execution trader, particularly given 3/4 is unpaid.
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