[Gllug] [OT] Non-compete clauses in employment contracts

John Edwards John.Edwards at cornerstonelinux.co.uk
Fri Feb 4 13:04:07 UTC 2005


On Fri, Feb 04, 2005 at 11:28:45AM +0000, Doug Winter wrote:
> Tethys wrote:
>> Don't know where you get that from, as in general, they are NOT
>> enforcable. You have a contract between you and your employer. At
>> the point yout employment ceases, that contract ceases, and anything
>> it contains, including non-compete clauses, becomes invalid. The
>> exception is clauses that say "don't leave to set up a rival business
>> and steal our customers". Although the contract ceases when you leave
>> the company, if there's any suggestion that you were in contact with
>> those customers with a view to arranging future business while you
>> were still employed by your previous company, then they have a valid
>> case.
> 
> I was told they are generally enforceable by someone who seemed to know 
> what they were talking about so I could of course be completely wrong.
> 
> Non-compete clauses in employment contracts are definately enforceable 
> at some times though so I think "At the point yout employment ceases, 
> that contract ceases, and anything it contains, including non-compete 
> clauses, becomes invalid." is a red herring.
> 
> Anyone who cares should obviously speak to a lawyer :)
> 
> doug.

Here's one solicitor's opinion:
    http://www.lemon-co.co.uk/protecting-business-interests.htm


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