Can an employer enforce this?

LegacyUser

Hi boards, just wondering can your current employer prevent you from joining another company that may be in competition with it for a period after your notice such as say 1 month, 3 months, 6 months, 1 year etc

thanks

Nody

Yes by taking you to court; depending on your role if they would have a chance to win though (i.e. Sales Director would stand a worse chance than a first level support clerk).

Jawgap

Depends on what's in your contract of employment.

I moved jobs last year (from Public Sector to a private firm) and I was specifically prohibited from working on any Irish PS contracts / tenders for 12 months and from soliciting work from certain companies I was responsible for supervising (also for 12 months).

In summary, if there was a non-compete clause in your contract your pretty much bound by it.

Polo_Mint

Is it in your contract that suggesting it?

MarkR

Anything in your contract about it?

Greenmachine

Help us out OP what was your original job role or at least the sector?

petes

We had to sign a new contract a couple of years ago. There was a clause in it that we couldn't work for a competitor or a client/customer for a period of time afterwards (can't remember the length of time). I told them to f off politely and wasn't signing such a contract. Fair play they amended it but if I hadn't read it I'd be bound by it. Check your contract OP.

Bicycle

Yes, but it has to be written into your contract of employment.

They are called Restrictive Covenants and there are four questions that need to be asked to see if they are enforceable:

1. Does the Employer have a legitimate interest to protect?
2. Are the restrictions in the covenant limited to this legitimate interest?
3. Is the duration of the restriction reasonable? (e.g. a year or under)
4. Is the geographical range of the restriction reasonable? (it usually should not extend beyond the boundaries of the state)

Ashbx

It all depends if its in your contract as far as I know. But yes, it does happen!

i71jskz5xu42pb

HangInThereBaby wrote: »

Hi boards, just wondering can your current employer prevent you from joining another company that may be in competition with it for a period after your notice such as say 1 month, 3 months, 6 months, 1 year etc

thanks

https://employmentlawireland.wordpress.com/2013/06/10/when-an-employee-joins-the-competition/

No matter what the type of restrictive covenant, it is for the party asserting the clause to prove it is reasonable in terms of time, space and subject matter.

Even if your contract has a non-compete, your current employer would need need to take a case and show that the clause was reasonable - they can't impede your right to work wherever you want without very good reason.

LegacyUser

I cannot actually give much more info about the role or even sector as it would be easily identifiable if I was to divulge much information so sorry for this.

It's in my contract for a company that I've just joined (I've yet to sign)

I completely understand non disclosure agreements but if this non-competition clause is preventing me from working elsewhere after my notice then I'm not comfortable with this.

witchgirl26

It could be so that if you're working on a confidential project you couldn't bring that across to a competitor straight after leaving your role. I know my bother had it in his as it was a small, highly competitive market for the items he was working on.

I'd say have a chat to HR about it but understand that it could be a case that they just don't want you bringing across details of your work with them to a competitor & that is understandable. It's nothing against you personally but they may have been burned in the past.

Sunny Disposition

Worked in a company before and they got people to sign similar contracts with a one year bar on working for competitors. One person got legal advice and was told that the employer couldn't restrict someone's freedom to work and that the clause was in effect not worth the paper it was written on.

salamanca22

Sunny Disposition wrote: »

Worked in a company before and they got people to sign similar contracts with a one year bar on working for competitors. One person got legal advice and was told that the employer couldn't restrict someone's freedom to work and that the clause was in effect not worth the paper it was written on.

This.

I was always under the impression non compete clauses were unenforceable in Ireland.

FishOnABike

You could suggest you would have no problem with their non-compete clause so long as it included a sub-clause which bound them to continue to pay you for the duration. If their intellectual property is not worth this then they shouldn't need a non-compete clause in the first place.

Berserker

If it's written into your contract then they can and do. I know some IT contract workers who have been taken to court for doing this. Most companies won't bother though.

salamanca22

Berserker wrote: »

If it's written into your contract then they can and do. I know some IT contract workers who have been taken to court for doing this. Most companies won't bother though.

They can be taken to court alright, but then again you can be taken to court for anything. This doesn't mean that they will be ruled against.

Every case I have read has always ended up the same way. Your right to earn a living supersedes any clause in a contract. Therefore the non compete was unenforceable.

What is enforceable are clauses that deal with competition and using the connections you have made in a previous job to steal clients for your new job. Also clauses that deal with company secrets, if you break a confidentiality clause then you can be in trouble too.


In the end of the day, you have the fundamental right to earn a living as laid out in the Irish Constitution. No one can take that away from you. The state is duty bound to make sure that this right is not encroached upon.

allandanyways

Non-competes do exist. I've worked in the travel industry my whole life, and they're a nightmare within niche industries depending on how heavily they enforce it. I've found it awkward when interviewing as it's well known which companies enforce strict non-competes, so interviewers are often a bit wary of you (like you won't be able to perform to your full potential if you're bound by a non-compete, which is bull).

First job I worked in had a well-known non-compete stating that in signing their contract, I agreed not to work for Competitors A, B & C for at least 1 year after leaving that job (direct competitors, same type of product - a reasonable non-compete in my opinion).

Last job that I just left in June had a whole A4 page long non-compete, listing specific companies and people that I could not work for up to 24 months after I were to leave the company, nor impart knowledge to anyone known to work for those companies about my job's role, clients, products or budgets, and "considerable legal action" would be taken if I contacted any of my clients while working for a named competitor at any stage.

The boss got stung by a heavy court case themselves when they set up their own company, so they were a bit OTT. I signed it but I got it amended to say that if I was to work in a different department in one of the named companies (I'm qualified across two areas relevant to the industry) that would not pose a competitive risk to my former employer, then no legal action would be taken.

It does depend on what area you work in - e.g. in travel, legal action on a non-compete would be most likely taken against Sales Execs and Sales/Product Managers and higher - those who have direct contact with clients/suppliers who give you business and negotiation power. Admin/Operations tend to move around a bit more freely because they don't work directly with clients/suppliers so would tend to pose less of a competitive threat in another company.

It's an awkward question to ask your employer, so in answering your question, think about the job in the other company and if there is any way that you taking that job could involve you using the product knowledge/contact details/insider knowledge to the competitor's advantage. If it's a clear yes, then be wary that your current employer could indeed enforce the non-compete and take legal action if you did take a competing job.

(I would keep in mind that court cases are lengthy, expensive and complicated so if you do take the competing job and have covered yourself in making sure it doesn't involve any of the aforementioned, then a respectful word with your boss/HR department to assure them that you have no intentions of ill-will and just want a change/more money etc, you should be fine.)