How long should a non compete clause last?
Duration – reasonable time limits should apply for any restrictions; they should not go on for longer than necessary or be open-ended. A reasonable time period for non-compete clauses is usually six months, but each case will depend on its own individual facts.
What does it mean to have a non compete contract?
Essentially, a non-compete contract is a legal agreement that prevents an employee from working for his or her employer’s competitors after leaving the business.
What happens if you breach a non-compete clause?
As such, a restriction of six months maybe more appropriate as this period would allow the hairdressing business time to protect their business interest by transferring the customer to a different hairdresser in the hope of retaining their business. What is the impact of breaching a non-compete clause?
What’s the definition of a non-compete period?
Non-Compete . During your employment or service with the Company and for a period of one year following the termination of your employment or service with the Company for any reason (the “Non-Compete Restricted Period”), you shall not, without the consent of the Company, directly or indirectly, provide services to,…
Duration – reasonable time limits should apply for any restrictions; they should not go on for longer than necessary or be open-ended. A reasonable time period for non-compete clauses is usually six months, but each case will depend on its own individual facts.
What do you need to know about a non compete contract?
A “covenant not to compete” (CNC), or non-compete contract, is governed by state rather than federal law, and the general term covers three aspects: Traditional non-competes prohibit the employee from joining competing business (es) identified either by name or description, during a specified period of time and within a defined geographical area.
What happens to a non-compete clause if you get fired?
In most cases, the non-compete clause still holds even if you are fired or laid off. However, you may be able to request that your former employer waive the clause. In such circumstances, employers are sometimes more open to waiving the clause. What should I do before signing a non-compete clause?