Non-Compete Clauses

Some employment contracts will include restrictive covenants also referred to as non-compete clauses. Usually, non-compete clauses will attempt to restrict the employee on termination or during the term of employment from soliciting company employees or its customers.

The non-competition clause might restrict an employees ability to work at another company within the same industry. Or, non-competition clauses might attempt to restrict the employee from discussing or disclosing confidential company information.

There are obvious reasons why an employer would want to ensure their interests are protected. However, courts frown upon non-compete clauses since they restrict trade. Generally, a court will examine the clause to determine whether it is reasonable or not in the circumstances and whether it goes beyond what is necessary to protect its legitimate interest.

Rehan Khalil
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