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Non compete clause in employment contract

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  • 07-03-2020 11:28pm
    #1
    Registered Users Posts: 706 ✭✭✭


    Hi all,

    I am looking at an employment contract which has a non compete clause. It stipulates (in summary) that the employee once terminated cannot compete within the same "geographical area in which the business operates" as the business for 9 months. The business is based and registered in Dublin but provides services throughout the entire country, but mostly in Dublin.

    My question is, how is the geographical area defined? It in effect rules out the entire country. Is this covenant enforceable?

    Thanks


Comments

  • Moderators, Society & Culture Moderators Posts: 6,769 Mod ✭✭✭✭nuac


    Mod
    Sorry cannot give legal advice here./
    Leaving open for general discussion subject to forum rules


  • Registered Users Posts: 661 ✭✭✭work


    SATSUMA wrote: »
    Hi all,

    I am looking at an employment contract which has a non compete clause. It stipulates (in summary) that the employee once terminated cannot compete within the same "geographical area in which the business operates" as the business for 9 months. The business is based and registered in Dublin but provides services throughout the entire country, but mostly in Dublin.

    My question is, how is the geographical area defined? It in effect rules out the entire country. Is this covenant enforceable?

    Thanks

    Not legal advice but get some. My understanding is a non compete clause cannot prevent your making a living and is generally very limited. I seriously doubt this has any value. Again chat to an employment expert


  • Registered Users Posts: 1,576 ✭✭✭Glass fused light


    SATSUMA wrote: »

    that the employee once terminated

    Employment is terminated
    = leaving for any reason

    Employee terminated = sacked

    Words and clauses make a difference

    So legal advice from someone in employment field would be a must

    SATSUMA wrote: »
    "geographical area in which the business operates" ...provides services throughout the entire country
    So the region is Ireland
    SATSUMA wrote: »
    9 months.
    Is this covenant enforceable?


    The covenant is only enforceable 2 ways

    1 via the courts
    The courts will not restrict an individuals ability to earn a living
    Its a balance between the employees rights and employers rights
    And is there gardening leave built in to compensate for loss of earnings?
    The higher up the management chain you go the longer and broader the restriction of the covenant would be held reasonable
    1 of 200 entry level guys v
    Sales director with all the clients

    So is the company willing to pay for a court case?



    2 via pressure applied to a new employer
    Is the new employer willing to be included in litigation to get the new employee


  • Registered Users Posts: 706 ✭✭✭SATSUMA


    Op here

    My understanding is that the geographical area in any non compete should be defined otherwise the clause is invalid due to it being nonspecific and detrimental to the person seeking to earn a living.


  • Registered Users Posts: 8,925 ✭✭✭GM228




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  • Registered Users Posts: 706 ✭✭✭SATSUMA


    GM228 wrote: »

    Thanks GM228 really helpful. Appreciate it.


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