Contract and Competitors

pclancy

Does anyone know if its legally binding in some way if....

It says in your contract you agree not to work with any of the companys competitors within 6 months after leaving?

What can be the outcome of you doing this? Can they sue you in some way?

How are you supposed to continue in your profession or trade if you cant keep working in your industry...

Nody

Yes they are legal as long as they are reasonble (a.k.a. a call center first level support with such a clause would not be held to it in court, a senior manager would) and yes they can sue you if you break it.

DublinWriter

pclancy wrote:

Does anyone know if its legally binding in some way if....

It says in your contract you agree not to work with any of the companys competitors within 6 months after leaving?

Yes, but it's primarily a scare tactic.

It wouldn't be worth any company dragging such a case through the court for the cost and negative PR.

pclancy

Right fair enough, thanks for the info...

DublinWriter wrote:

Yes, but it's primarily a scare tactic.

It wouldn't be worth any company dragging such a case through the court for the cost and negative PR.

MrPudding

I have been told on several occasions that they aren't worth the paper they are written on and would be most unlikely to be upheld bt any court of law.

MrP

pclancy

Yeah ive heard that too, some say its legal others laugh it off. Anyway they're going to make up their own mind and talk to a solicitor, thanks for the info...

The Hill Billy

DublinWriter wrote:

It wouldn't be worth any company dragging such a case through the court for the cost and negative PR.

I have to disagree with you on that point. I know of two separate cases where contractors were taken to court for going to work for a client in contradiction to the terms of their contracts.

In one case the client ended up paying a bounty to the company for the contractor, the other case is ongoing.

As for the negative PR - for the contractor deffo. I wouldn't hire someone whom I knew didn't give a toss about the Ts&Cs in their contract.

Kernel32

Non competes do have legal standing. They can be fought in court but the difficulty for your regular person is paying legal fees. There was a very public example a while back between Microsoft and Google. Google poached a high level Microsoft employee who was under a non-compete to work in Google China.

Personally I would not sign a non-compete unless the employer is willing to pay for it in the form of something like a sign-on bonus. Also, if a competitor tries to ever headhunt you, then make sure they are willing to shoulder the legal fees if a court case happens.

galway008

I know some one who had this clause and went to work for competitor, company took them to court, judge thru it out as under the constitution you have a right to work !