manders Posted August 31, 2014 Report Share Posted August 31, 2014 I guess this belongs on a legal forum, i know we have a wide range of folks on here though. Anybody come a cropper because of one of these or know anything about them? I understand some have been upheld in the UK courts in recent years... Quote Link to comment Share on other sites More sharing options...
CephFan Posted August 31, 2014 Report Share Posted August 31, 2014 Wikipedia suggests: "In the United Kingdom, CNCs are called Restraint of Trade clauses and may be used only if the employer can prove a legitimate business interest to protect in entering the clause into the contract. Mere competition will not amount to a legitimate business interest." And I'm afraid that Wikipedia is as far asy expertise goes! Cheers, Steve Quote Link to comment Share on other sites More sharing options...
manders Posted August 31, 2014 Author Report Share Posted August 31, 2014 Thanks Steve, I was curious if anyone had fell been through this with a previous employer. Even though its probably not binding in the UK for most people, the company can still apply for an injunction and sorting it out in court could take quite a while (and hence cost). I was curious if anyone had recently experienced this. I know some folks it happened to well over a decade ago and they couldnt work for half a year, things may be different now (worse or better?). Non comptete clauses seem to be fairly standard practice in contracts these days. Quote Link to comment Share on other sites More sharing options...
mantrid Posted August 31, 2014 Report Share Posted August 31, 2014 Out of interest what is it? and what does it allow the employer to do? Quote Link to comment Share on other sites More sharing options...
manders Posted August 31, 2014 Author Report Share Posted August 31, 2014 (edited) Depends on the wording but typically means that you cant work in the same area of expertise as your previous employer for typically a period of one year after leaving, or can't work for one of their competitors or set up a business in the same area (sometimes geographic or more typically area of expertise). Another outcome was we tried to hire someone recently and couldnt because he had a non-compete clause with his existing employer (UK). Yet another aspect was when someone resigned from our company we threatened the new comany with legal action so he was sacked from his new job and left jobless (US not UK). Edited August 31, 2014 by manders Quote Link to comment Share on other sites More sharing options...
Dave Evans Posted September 4, 2014 Report Share Posted September 4, 2014 This is an example of bullshit. Of course people in the same business compete. A non-compete clause is by definition, making someone work for free. A slave to an idea, not a person, but a company. We live a competitive world, requiring someone to be non-competitive is telling them not to work. You want someone not to work for a year? Then pay them not to. Other wise, does not compute. Quote Link to comment Share on other sites More sharing options...
Phil Green Posted September 4, 2014 Report Share Posted September 4, 2014 I can understand why they would be used. Who really wants someone coming to work for you for a few months, learning all your 'tricks of the trade' and customer list, then setting up as a competitor just down the road. Basically Steeling all your years of hard effort. Lets get real, there are scum bags out there and employers need protection just as much as employees. Some of these employers are small family business, not just huge multinationals. 1 Quote Link to comment Share on other sites More sharing options...
manders Posted September 4, 2014 Author Report Share Posted September 4, 2014 This is an example of bullshit. Of course people in the same business compete. A non-compete clause is by definition, making someone work for free. A slave to an idea, not a person, but a company. We live a competitive world, requiring someone to be non-competitive is telling them not to work. You want someone not to work for a year? Then pay them not to. Other wise, does not compute. That is pretty much why until recently they were never enforced in the UK or Europe, they are however strongly enforced in the US (except a few places like california). I work for a US company and its fairly routine that when someone leaves, the company lawyer will be asking 'is there anything we can get them for? ' Quote Link to comment Share on other sites More sharing options...
manders Posted September 4, 2014 Author Report Share Posted September 4, 2014 I can understand why they would be used. Who really wants someone coming to work for you for a few months, learning all your 'tricks of the trade' and customer list, then setting up as a competitor just down the road. Basically Steeling all your years of hard effort. Lets get real, there are scum bags out there and employers need protection just as much as employees. Some of these employers are small family business, not just huge multinationals. Yep, they can just as easily be applied to hairdressers that want to prevent ex-employees starting a business in the same road. Where it gets a bit less clear is when companies use them to prevent you leaving, or working for someone else when you do leave, if it involves IP of the company thats one thing, but it can just as easily be a routine thing to do to leavers. This is one reason california has so many more start up companies than massachusetts, because in massachusetts NCC's are very aggressively chased through the courts and in californa they're not. Quote Link to comment Share on other sites More sharing options...
Alexis Posted September 5, 2014 Report Share Posted September 5, 2014 Good idea to negotiate 6 months paid gardening leave in any contract if you're in that kind of career. Nice work if you can get it! 1 Quote Link to comment Share on other sites More sharing options...
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