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Non compete contract/clause?

asked by Cowdry1 posted 11 Months ago at 13:28
How useful and serious is a non-compete policy/clause in contract of employment? Can it actually be applied in law or is it deemed a restriction of trade?

We don't want to make an employee feel uncomfortable, but at the same time we do need to protect ourselves from any employee leaving and taking clients with them as a start-up or to a competitor.

1-2 of 2 Answers
Anthony Ali answered 11 Months ago at 14:00
Isn't there a difference between non-compete and client ownership?
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Malcolm Thomas answered 11 Months ago at 13:54
The starting point is that all restrictions applying on the end of employment, including a non-competition clause, are void as being in restraint of trade. However, a non-competition clause may be enforceable as far as is necessary to protect highly confidential information or where a clause preventing the non-solicitation of customers would be difficult to monitor. A non-competition clause would also need to be drafted so that it did not go beyond what was reasonably required to protect the business interest.

Each situation is different and you should consult an employment lawyer!.
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