Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Non-compete Contract Clauses

  • 31-10-2011 5:35am
    #1
    castie
    Hosted Moderators Posts: 3,807 ✭✭✭


    Not sure if this has been put before but was having a debate with a co-worker on this particular clause. Not looking for advice but wondering when exactly it is deemed enforcable or not.

    So John Doe works for Company A.
    Company A has a software platform called Platform A.

    John Doe has knowledge of this product and has a non competition clause in this contract which mentions "direct competition".

    John Doe decides to leave and apply to Company B where his job will be to build something similar.
    Company B's business area is the target market for Company A's product.

    Now is John Doe in breach here?

    In my opinion he would have detailed knowledge of the product and hence would be "competing" against his former employers.

    My co-worker disagrees on the basis that he doesnt think this is a reasonable attempt by Company A to protect its interests.

    Thoughts?

    Also I am curious as to when a person's "right to earn a living" is breached.

    In the above example if the only opportunities available to John Doe were in the target market of Company A then would this non-compete be void?

    Thanks for the time!


Comments

  • #2
    Reloc8
    Closed Accounts Posts: 2,857 ✭✭✭Reloc8


    In the absence of a specific non-compete clause John is free to work with any competitor of Company A.

    Even where a specific non-compete clause is part of the contract, the courts will only enforce a period of time which is considered to be 'reasonable'. This depends on the role and seniority of John with Company A but presume that a period of say 12 months would be very much the outer limit, even where say 10 years or whatever has been agreed.

    The other issue is whether that which John Doe has knowledge of amounts to a trade secret or is within a copyright or other intellectual property right, in which case proceedings could be taken to prevent him sharing that information. If it is simply 'secret' (e.g. customer lists/pricing strategy) then it is far more likely that he can use that, once not in breach of a non-compete clause.

    Its not really possible to advise fully on these scenarios without detailed specific instructions.


Advertisement