0

In a non-solicitation contract there is a section that reads as follows. Does this bar the signer from working in information technology sector for 6 months? Put simply, does this means he would have to wait 6 months before working at a job in a related field? Is this enforceable?

For six (6) months following the termination of my employment with SpecialCorp, I will not, without the prior written consent of SpecialCorp: a) have any direct interest in or own; or b)
act as an officer, director, agent, employee or employee of; or c)
assist in any way or in any capacity,any person, firm, syndicate, partnership, association, joint venture,collaboration, or other entity that is engaged in a business that is in direct competition with the business engaged in by SpecialCorp within BC. For greater certainty, I agree and understand that SpecialCorp provides the following services: information technology.

6
  • 1
    You might want to add a jurisdiction tag. A non-compete clauses which is valid in Armenia might be unenforceable in Sweden.
    – Philipp
    Feb 17, 2021 at 10:48
  • Also, what does "within BC" refer to in this context?
    – Philipp
    Feb 17, 2021 at 10:51
  • I can't say if it's enforceable or not, but having prior written consent means the signer is not barred so he does not have to wait 6 months.
    – user35069
    Feb 17, 2021 at 10:54
  • 1
    Also, the quoted clause is "direct competitioner" not "In this industry". If you go away from company A making for example kitchen knives you could join company B making scalpels if they don't compete in the market.
    – Trish
    Feb 17, 2021 at 11:16
  • 1
    Does "BC" here mean "British Columbia"? Feb 17, 2021 at 14:52

1 Answer 1

1

does this means he would have to wait 6 months before working at a job in a related field? Is this enforceable?

No. Although the last sentence appears to encompass the whole IT business in British Columbia, that naive provision would be voided as unreasonable and contrary to public policy. For that clause to be valid, (1) "direct competition" can only mean "the same actual or prospective client(s)" in regard to the IT business, or (2) the contract would have to require from SpecialCorp enough consideration in order to render this constraint reasonable.

Note there is a difference between "prospective" and "potential". Every entity which is not an actual client is a potential one. But "prospective" suggests that the entity is engaging in negotiations with, or screening of, SpecialCorp for a project or service plan.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .