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

[Jason Clifford]

On Fri, 4 Feb 2005, Alain Williams wrote:

> I think that the point is that a clause cannot prevent you from working.
> So something preventing you from doing something highly specific (eg
> writing the very same program that you have just been contracted to do) might
> succeed, whereas something general (eg writing another e-commerce site)
> would not - especially if that is where your best skills & so chance of
> greatest employment lies.

That's the important thing when considering whether a non-compete or other 
restrictive clause in your contract is valid - whether it is properly 
limited in scope. 

There is also the question as to whether your level of employment is such 
that a clause of this kind is appropriate - a junior position will rarely 
have an enforcable clause whereas a clause in the contract of a senior 
member of staff will certainly be something to be carefully considered.

Note that for a non-complete clause to be valid in a contract there must 
be some consideration in exchange for it. Other than the matter of not 
grabbing customers of your employer practically nothing is enforcable 
without a proper consideration being exchanged - often this means that an 
employer ends up having to offer you a period of "gardening leave" if they 
want to prevent you working for the competition.

As others have said if you find yourself in this position and the amounts 
involved are enough to justify it get proper legal advise.

Jason Clifford
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