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Employment contracts - Solicitation and other business clauses

  • 15-05-2016 4:57pm
    #1
    MaggieNF
    Registered Users, Registered Users 2 Posts: 230 ✭✭


    Hi all,

    Following a debate with a friend, I have recently been reviewing employment contracts and terms of employment with specific regard to solicitation clauses and clauses in connection with private business/engaging in other work.

    I am aware that a solicitation clause would need to be drafted in a very specific manner in order for it to be effective. The area of debate here is whether or not an employer would be able to take a case for solicitation in situations whereby the party being solicited away from the employer was actually introduced to the business by the person who solicits them. I feel that in a case like this, the client would not exist had it not been for them being introduced by the employee and they are effectively a customer of the employee via their employer and not a direct customer of the employer. My friend feels that if a clause is well drafted in this area, the employer could hold onto the customer and commence litigation against the departing employee if they try to solicit the customer.

    The second area of debate is around other business clauses, specifically where a contract or terms of employment state that the employee needs the permission of their employer to commence any other form of business outside of their employment, be it paid or unpaid. My friend feels that this is acceptable if it is written down and the employee has agreed to it in some form. I feel it is a ridiculous clause and it is unreasonable that an employer who employs people for 25-40 hours a week and pays them €30-40k per annum should not have any right to dictate what the employee does in their free time. I do however accept that this may have legitimate uses for an employee whose total remuneration is in excess of say €100k per annum.

    Does anybody have any opinions or anything to add to the above?


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