Non-competition clauses are a type of restrictive covenant found in employment agreements that, in essence, are designed to prevent employees from entering into or starting a similar profession or trade in competition against their former employer. Absent a non-competition clause, there is nothing standing in the way of an employee from taking a business built up by their employer and using the contacts and knowledge they’ve gained working for that employer and opening up their own competing business. This is something that, clearly, employers are keen to avoid, and one of the most common ways to do this is by utilizing non-competition clauses in their employment agreements.
While the purpose of non-competition clauses is to protect the employer’s business interests, it’s essential to strike a balance with the employee’s right to earn a living after they have moved on from that employment. Non-competition clauses are often used for employees who … Continue reading