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non compete clause

  • 25-08-2025 03:01PM
    #1
    stayback
    Registered Users, Registered Users 2 Posts: 168 ✭✭


    I work in a competitive area. I have been approached by a competitor to lead out on a new department in the same industry.

    On my contract it states that I cannot work for a competitor for 6 months.

    The issue is that colleagues of mine some more senior and some junior have left and went working for competitors. They didnt have to serve the 6 months. They were sent on gardening leave for their notice period. The clause is standard in the contract so they had the clause in their contract aswell.

    The question is are non compete clauses enforceable.



Comments

  • #2
    thebiglad
    Registered Users, Registered Users 2 Posts: 1,784 ✭✭✭thebiglad


    Unless you are extremely senior and compensated, I would expect this to be seen as a restraint of trade but will watch the thread with interest. If, however it is normal in the industry you are in then the new employer will wait for you to serve 6 months and, as your current employer doesn't want you downloading everything they won't let you near the office or server so, you'll get a 6 month paid holiday.

    Take a course or 2…



  • #3
    ax530
    Registered Users, Registered Users 2, Paid Member Posts: 499 ✭✭ax530


    I reviewed a work contract with a solicitor previously. He said something along the lines of companies wouldn't enforce these for anyone except maybe on rare occasions a CEO type.



  • #4
    Larbre34
    Registered Users, Registered Users 2 Posts: 26,354 ✭✭✭✭Larbre34


    They are enforceable if any particular employer cares to spend the time and money to enforce them.

    But there are no circumstances where they will come out ahead financially by doing so.

    On a few occasions I've seen a few situations where there is an informal mutual agreement to split the difference, where the employee will agree to 2 or 3 months of gardening leave, and the employer sets aside enforcement of the 6 months from their side.

    In practice though, most people complete induction and orientation with their new role during this time.



  • #5
    dennyk
    Registered Users, Registered Users 2 Posts: 1,893 ✭✭✭dennyk


    But there are no circumstances where they will come out ahead financially by doing so.

    Outside of a case where an employee would actually be bringing insider trade secrets to a competitor, the only real advantage to seeking enforcement would be to discourage other employees with the same clause in their contracts from quitting to join competitors as well. If the OP's company hasn't bothered to pursue those who have left for competitors before, it's less likely they'd bother to pursue the OP.



  • #6
    Jim2007
    Moderators, Business & Finance Moderators Posts: 11,045 Mod ✭✭✭✭Jim2007


    But there are no circumstances where they will come out ahead financially by doing so.

    On the contrary in my experience the only reason to take such a case is in situations where there are significant financial implications at stake. In cases where there is an IP issue, one normally names the prospective employer as a warning shot and to make a record of the issue. In private banking we usually take such cases in order to prevent client advisors from taking clients with them and to prevent insider trading for an extended period often 24 months rather than the standard 6 months and so on.



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  • #7
    FazyLucker
    Registered Users, Registered Users 2 Posts: 674 ✭✭✭FazyLucker


    A friend of mine was threatened with court proceedings over a no compete clause, so they are very much enforceable.

    It depends on how they can prove that you violated it though I would say.



  • #8
    stayback
    Registered Users, Registered Users 2 Posts: 168 ✭✭stayback


    https://www.boards.ie/discussion/comment/123768532#Comment_123768532

    Thanks for that. did the court case go ahead and what was the outcome



  • #9
    helimachoptor
    Moderators, Science, Health & Environment Moderators Posts: 21,786 Mod ✭✭✭✭helimachoptor


    For this - i know the person but as always there's back story.

    A number of senior managers had left VF to go to o2 and VF did not enforce the non competes( gardening leave)

    Then an o2 senior manager resigned to join VF and o2 enforced it.

    VF then said the next person who leaves for o2 will have theirs enforced and the case was the result.

    In the end the period was reduced from 6 to 3 months.

    But as Labre says, most dont enforce, you generally need to be pretty senior to make it worthwhile.

    https://wdsolicitors.ie/high-court-injunction-plaintiff-claims-damages-not-adequate-remedy-where-loss-of-salary/



  • #10
    FazyLucker
    Registered Users, Registered Users 2 Posts: 674 ✭✭✭FazyLucker


    https://www.boards.ie/discussion/comment/123774131#Comment_123774131

    He backed down and sat it out for 6 months.



  • #11
    Gmaximum
    Registered Users, Registered Users 2 Posts: 391 ✭✭Gmaximum


    this has been tested in the Supreme Court

    Certain restrictions my apply but hard to see it being enforced if moving to a competitor


    https://www.algoodbody.com/insights-publications/ryanair-case-demonstrates-difficulties-in-enforcing-restrictive-covenants



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