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

Doug Winter doug at pigeonhold.com
Fri Feb 4 11:28:45 UTC 2005


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.

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