Employment Conditions

castie

Background:

Company A have clients in Sector A.
In fact their clients would amount to almost 99% of sector A.

Person A has an employment contract with Company A.
In this contract it states that on leaving Company A he/she may not work for any company that is a client of Company A.

The work performed and experience gained by Person A is entirely applicable only to Sector A.

Can this clause be legal if it prevents Person A from attaining employment in his/her specialised area? (i.e is 99% of the companies)

Farcear

Yes, non-compete clauses are legal... provided they are limited appropriately!

Person A may not work, e.g.
- for X months;
- for companies in Territory Y;
- who operate in Sector Z.

castie

Farcear wrote: »

Yes, non-compete clauses are legal... provided they are limited appropriately!

Person A may not work, e.g.
- for X months;
- for companies in Territory Y;
- who operate in Sector Z.

But if this restriction prevents you from working?

Bit more information on Company A.

They are a consulting company so technically any role Person A could possibly take on would be covered by a non-compete effectively preventing Person A from getting employment in their field.

Farcear

As stated above, non-compete clauses are valid as long as they are sufficiently narrow. A clause that prevented an employee from getting any job would obviously be too broad.

As you seem interested in it, here's a random internet article that does explain the relevant principles:

Common Law - Restraint of Trade.
http://www.mjoc.ie/home_nav_59_nid_13_y_2007_m_10.html

castie

Farcear wrote: »

As stated above, non-compete clauses are valid as long as they are sufficiently narrow. A clause that prevented an employee from getting any job would obviously be too broad.

As you seem interested in it, here's a random internet article that does explain the relevant principles:

Common Law - Restraint of Trade.
http://www.mjoc.ie/home_nav_59_nid_13_y_2007_m_10.html

Thanks very interesting read!

Procrastastudy

If possible a court may try and save some of the clause if one element is found to be to broad. The blue pencil rule or some such stuff I have forgoten since I was examined on it less than two months ago

E.g. You may not work as a X for a year in Ireland or any member state of the EU becomes - You may not work as a X for a year in Ireland.

Right 2B a liar

Do the clauses have to be accompanied by remuneration as it violates the right to work?

aoshea83

Posted in wrong post! Apologies

MagicSean

Right 2B a liar wrote: »

Do the clauses have to be accompanied by remuneration as it violates the right to work?

You still have the right to work, just not in a specific sector.

jblack

Right 2B a liar wrote: »

Do the clauses have to be accompanied by remuneration as it violates the right to work?

Your remuneration was decided you signed the non-compete, i.e. your salary and terms of employment.

No, they do not.

Right 2B a liar

You are both right but so too was I kind of Having recently concluded a module on M&A we dealt with such clauses. where the acquiring company is requesting a non compete clause they must pay some remuneration.