Non Competition Agreements
- Thread starter KYG
- Start date
In my case, I brought these clients to this company so these clients know me well. I did sign the non compete. But I've heard mixed thoughts on this.
I guess at the end of the day. Both parties would rather settle out of court rather than spend a lot of money on unnecessary legal bills.
I guess at the end of the day. Both parties would rather settle out of court rather than spend a lot of money on unnecessary legal bills.
From my understanding non-complete clauses are not enforceable unless the employer pays you. The idea in law is that a company cannot force you to sign an agreement that prevents you from making a living. If all of your business knowledge is caught up into selling widgets and your company fires you then in order to prevent you from contacting those same accounts for say a period of one year they would have to pay you one years salary in compensation.
If you are planning on leaving the company I would suggest that you start to make efforts to build a personal connection with these clients. For example get onto linkedin.com and get clients to link with you. When you leave they would still have a way to find you. I think if they contact you it would be difficult to sue.
i would suggest investing $200 and go and talk to a good lawyer in a big downtown law firm that specializes in employment law and they will tell you exactly where you stand and the best approach to take.
Lawyers are bastards but they are worth every penny when you need a bastard in your corner!
If you are planning on leaving the company I would suggest that you start to make efforts to build a personal connection with these clients. For example get onto linkedin.com and get clients to link with you. When you leave they would still have a way to find you. I think if they contact you it would be difficult to sue.
i would suggest investing $200 and go and talk to a good lawyer in a big downtown law firm that specializes in employment law and they will tell you exactly where you stand and the best approach to take.
Lawyers are bastards but they are worth every penny when you need a bastard in your corner!
I was working here in Vancouver as a sub-contractor for a company, until recently. I now started my own small company, and yes... have some of her clients! Yes.... I did sign a non-compete agreement.
I left due to the fact that I am much more the independant type, and I didn't like the way she ran her company. (an inconsistant functioning addict type, who had other legitimate avenues of income in addition to her business that no longer seemed to interest her)
I too debated whether or not to steal her clients. In the end, I decided to do it somewhat subtley. None of the clients were impressed at how the business was being run. Some of them knew I was leaving, and came with me, as I had gotten them results, and I was working with them directly, not her. I let the clients come to me. Some of the called me to see what was up, and I informed them I was now on my own. They followed of their own will, without me contacting them.
I think when you go against a non-compete agreement you have to be very careful about looking unprofessional, and "shady" in your industry. Depending on what industry you are in, I think that non-compete agreements don't hold up too well in court. There are so many grey areas... and complexities. If the clients come to you.... you cannot be held liable.
Be prepared to receive threats of court when your former boss finds out... but I have heard from someone who has been through it twice.. it usually doesn't go beyond lawyers sending threatening letters.
I'm not too worried about what will happen if my former company finds out that I "stole" the clients. I did not do it on a large scale, and hey..... I consider them more mine, as I am the one who put in lots of work and effort to keep them. In the end, they followed me for my skills and personality anyway.
It's every woman/man for her/hisself out there..... especially with the economic state right now. Grab what you can! Just be careful.....
I left due to the fact that I am much more the independant type, and I didn't like the way she ran her company. (an inconsistant functioning addict type, who had other legitimate avenues of income in addition to her business that no longer seemed to interest her)
I too debated whether or not to steal her clients. In the end, I decided to do it somewhat subtley. None of the clients were impressed at how the business was being run. Some of them knew I was leaving, and came with me, as I had gotten them results, and I was working with them directly, not her. I let the clients come to me. Some of the called me to see what was up, and I informed them I was now on my own. They followed of their own will, without me contacting them.
I think when you go against a non-compete agreement you have to be very careful about looking unprofessional, and "shady" in your industry. Depending on what industry you are in, I think that non-compete agreements don't hold up too well in court. There are so many grey areas... and complexities. If the clients come to you.... you cannot be held liable.
Be prepared to receive threats of court when your former boss finds out... but I have heard from someone who has been through it twice.. it usually doesn't go beyond lawyers sending threatening letters.
I'm not too worried about what will happen if my former company finds out that I "stole" the clients. I did not do it on a large scale, and hey..... I consider them more mine, as I am the one who put in lots of work and effort to keep them. In the end, they followed me for my skills and personality anyway.
It's every woman/man for her/hisself out there..... especially with the economic state right now. Grab what you can! Just be careful.....
Court decisions regarding Non-Compete agreements are not consistent when it comes to detailed differences in the agreements themselves or in the conduct of the parties therfore only general principles are reasonably certain.
1.No court will enforce an agreement that totally prevents you from earning a living in your profession. Eg. You will never work as an electrician in the province again.
2. Courts will often interpret an agreement to restrict its limitations on you to the level that only protects your previous employer to a "reasonable" extent, even if the argreement is worded to provide more restriction. Changing the explicit terms of an agreement has been criticized by appeal courts.
3. Totally unreasonable terms in the agreement will not be enforced at all. Eg. an agreement that says you cannot work as in retail in any capacity in Victoria during the next 10 years.
4. The courts are more likely to enforce an agree given as part of the sale of a business than one given by employees. Eg. You sell your Sushi restauant agreeing not to compete and then open a similar restaurant a block away.
5. The agreement is between you and your employer. It does not bind the client. If a client chooses to follow you, that is the clients right and cannot be prevented by your former employer. Eg. the former customer sees the ad in the paper indicating that you are with a new company and calls that new company.
6. Most employment related agreements can be effective if you take a customer list and contact those customers in an attempt to have them follow you. Eg. you use the list or memory and send out notices that are intended to get the customer to move.
7. Courts will not be happy with you if it appears that you were soliciting your old firm's customers while you were still working for it. Eg. while working with a customer you tell him/her that you are leaving for a position with a specified firm and hope they will call and make an appointment after you leave this job.
This is just a general guidline to a very tricky area of law, the details may matter.. If you are in doubt it is safest to talk to a lawyer who has some experience in this type of law.
1.No court will enforce an agreement that totally prevents you from earning a living in your profession. Eg. You will never work as an electrician in the province again.
2. Courts will often interpret an agreement to restrict its limitations on you to the level that only protects your previous employer to a "reasonable" extent, even if the argreement is worded to provide more restriction. Changing the explicit terms of an agreement has been criticized by appeal courts.
3. Totally unreasonable terms in the agreement will not be enforced at all. Eg. an agreement that says you cannot work as in retail in any capacity in Victoria during the next 10 years.
4. The courts are more likely to enforce an agree given as part of the sale of a business than one given by employees. Eg. You sell your Sushi restauant agreeing not to compete and then open a similar restaurant a block away.
5. The agreement is between you and your employer. It does not bind the client. If a client chooses to follow you, that is the clients right and cannot be prevented by your former employer. Eg. the former customer sees the ad in the paper indicating that you are with a new company and calls that new company.
6. Most employment related agreements can be effective if you take a customer list and contact those customers in an attempt to have them follow you. Eg. you use the list or memory and send out notices that are intended to get the customer to move.
7. Courts will not be happy with you if it appears that you were soliciting your old firm's customers while you were still working for it. Eg. while working with a customer you tell him/her that you are leaving for a position with a specified firm and hope they will call and make an appointment after you leave this job.
This is just a general guidline to a very tricky area of law, the details may matter.. If you are in doubt it is safest to talk to a lawyer who has some experience in this type of law.
I got caught on this one once & the former company had their lawyers send a cease & desist letter to my then current employer making it clear they would be liable for any loss of revenue.
Luckily, in my case, the non-compete clause was only enforceable for 6 months after I ended employment with the former employer & once that time was up I promptly stole 12 of the former employer's best customers.
Those customers saw it in very simple terms & explained to my former employer that once I left the good service they were used to & had become dependent upon ended.
They were loyal to me because I treated them right.
The total income these customers were worth in sales for my new company was in excess of $120,000 annual.
Guess what my percentage of that new business was?
