From iWoz:
<quote>
Before the partnership agreement was even inked, I realized something and told Steve. Because I worked at HP, I told him, everything I'd designed during the term of my employment contract belonged to HP.
Whether that upset Steve or not, I couldn't tell. But it didn't matter to me if he was upset about it. I believed it was my duty to tell HP about what I had designed while working for them.
[Later, after getting an order for one hundred Apple Is]
I decided I should run the whole thing by HP one more time. I spoke to Pete again. He told me to run it by legal. The legal department ran it by every single division of HP. That process took about two weeks. But HP still wasn't interested, and I received a note from HP's legal department saying they claimed no right to my design.
</quote>
Oh Merciful Book Industry, please do not smite me for reproducing a few paragraphs from a book.
<quote> The very first thought in my mind was, "I think I signed a document that everything I design belongs to Hewlett-Packard." Even just on my own time, I thought that they deserved it first. And I wanted Hewlett-Packard to build this. </quote>
Good call.
An alternative is to not give up your company and hope they fire you, and then sue for unfounded dismissal. This can be quite lucrative. I wouldn't want to wage a legal battle in a country I just arrived in, in a language I don't speak though.
If you speak Dutch there is a quite good forum that often has useful advise (in addition to consulting a lawyer, not instead of).
The union advise below is, as much as I dislike them, good - for little money they will help you out with this. A legal assistance insurance isn't going to cover this issue at this point, if you didn't have one before this whole thing started.
Also I'm really curious on what company this is, and what country you're from.
I don't speak Dutch yet, unfortunately, and even if I'm studying it, it will not become good enough in a short time. So I can't use the forum you wrote about.
Answering your last question: I'm Italian and I'm working for a big big social network here (you will surely know it). The workplace is quite good actually, except for this rule, that happens to be one of the most important things to me...
I was intrigued by the legal issues and after doing some research I am not so convinced any more as I was in my previous answer. You didn't provide the full text of your non-compete clause but most 'standard' ones are quite elaborate and do include broad exclusions on what is considered being in competition. Considering that your company can afford professional council I would expect your employment contract to be quite elaborate and tight. The case law also points to a fairly broad interpretation of non-compete clauses - i.e. the competition can be only slightly overlapping and that would still be covered by many non-compete clauses.
On top of that, now that I know who your employer is, I would argue that you are (with at least one of your products) in direct competition with them and/or several of their strategic partners. It still sucks for you that they promised you could continue work on it and now they won't let you but that does not have any legal standing any more.
Anyway good luck. One hint as to an option would be that your Ltd can have a trust for a director, and that the beneficiaries of UK trusts can be anonymous...
I'm Italian
That's a big advantage, as as an EU citizen you will not be deported if you lose your job (and don't find another one shortly thereafter).What is true is that an employer becomes copyright holder of any work done for that employer, as part of the employment contract. No further contractual agreement is necessary.