Employment Agreement?

Question

I am currently working for a company but have an offer to work for a competitor. There was a clause in the agreement I signed:
"Non-Competition." The Employee shall not, without the prior written consent of AHGS, at any time during the term of this Agreement and following the date of termination or expiration of this Agreement for the period of six (6) months, either individually or in a partnership or jointly or in conjunction with any person as principal, agent, consultant employee, shareholder or in any other manner concerned whatsoever, carry on or be engaged in or advise or provide any consulting services for *** or its Affiliates including ***, in British Columbia. Notwithstanding the prohibition on investments contained in this paragraph, passive investments by the Employee shall be permitted."
Does this mean I cannot be employed by the other company?
I am not in a "higher up" position.

Answer 1

Not sure !! but you could call a labor attorney and ask over the phone,, they usually will give a consultation free

good luck

Answer 2

Employment agreements are a bit sticky in that they're open to interpretation and typically poorly written, overly broad, or just plain illegal. This one seems a bit more specific than most, which works in their favor. Most courts will not enforce an agreement which precludes you from reasonably earning a living in the field in which you've chosen to work, but they often will enforce situations where trade secrets, proprietary processes, developmental relationships, or confidential information are at stake. (E.g. if you were working with R&D, M&A, or related parts of the business, you're going to find the covenants of what you signed to be more enforceable than if you're a territory salesperson, a secretary, or a warehouse clerk.)

In any case, the numbers involved are sufficiently large that you are best served by having an attorney familiar with the precedents of your local jurisdiction give advice. It's probably the best $100 you can spend, if only for the peace of mind it will bring you. As an alternative, if the new company really wants you, ask them to provide a legal review of the covenant and agree to indemnify you against any legal costs incurred.

Answer 3

I agree with Scooter. Non compete clauses are sometimes difficult to enforce and depending on your position and what "trade" secrets you may possess, most companies won't bother enforcing them. Especially if they don't contain any damage clauses. Absent you waiving your rights or agreeing to damages if you violate the contract, then they would have to prove that they sustained damages by your employement with the new company. That won't be easy and any contract will be interpreted to the benefit of the non originator. In other words, if the contract is vague, was provided by the company, then any ambiguity would be decided in your favor.

I noticed that it only pertains to "consulting" work so if you are in fact an employee of the new company then I don't think this clause would apply.

Answer 4

I read this as the 6 month prohibition applies only to a single company, " *** or its Affiliates including *** in British Columbia". If that's the company your considering being employed by, you cannot without prior written consent. Best bet is to see an attorney. Be careful of the non-compete clauses. My son got tangled in one and almost had to go to court over it.

Answer 5

It means you cannot be employed by another company for 6 months if the new company engages in providing services directly connected to the current company.

It doesn't matter what position you are in.

However, it does not prohibit from you working for a company if the company does not offer services for the product or services offered by the original company.

This is somewhat unusual because non-compete clause usually prohibits two things - working for another company in the similar business AND working for another company providing services for the original company.

In this case, it is only prohibiting the latter.

It seem to ONLY mean, they don't want you to quit and take their current customers offering services the company offers.

Answer 6

Firstly, where are you located? Local laws will first apply to your predicament. In some jurisdictions, if you are not in a position where utmost confidence is reposited, such stipulation may be considered as restraint of trade. In other jurisdictions, (like US), there is primacy given to contractual stipulations and you cannot transfer to a competitor company without securing the consent of your present employer, or until 6 months have lapsed.

In any case, if the offer of the other company is too good to pass up, try to hand in a letter of resignation to your manager. Maybe you can ask him or her to sign a conforme (worded unobtrusively) that you are discharged from your current position without any pending obligations, and that after your resignation you are free to work in any company that you choose.

Answer 7

If that "other company" is in any way an AFFILIATE of the one with whom you are now employed, then you are obliged to wait 6 mos between jobs. There are ways that many companies settle this between the two entities where it is in their interests to do so, and waive the 6mo clause. That "non-competition" applies to sister companies within a single organization. Imagine if Pizza Hut and KFC were both PepsiCo companies. You would have to wait to go between one and the other. But you could leave and go, say, to StarBucks if you decided to change jobs, as StarBucks is not a PepsiCo entity. Someone who works for Sears Optical could not leave and go to Target Optical, under such an agreement, as both are Luxottica holdings. But that same one COULD go to work for WalMart Optical. See what I mean? Its to eliminate competition within the same organization.
Typically, companies know with whom they are obliged to consider the terms of a non-comp. contract with... And your "position" has nothing to do with it, either way.

In short, if that "other company" is NOT an affiliate of the company where you now work, then you are free to fly at will.

Answer 8

If you signed a "No Compete" agreement your hands are tied.

This is a formal contract that you agreed to sign.

This ensures the employer that you won't take trade secrets and give them to competitors or start one yourself.


So in short...Yes, you CAN NOT work for the company offering you a job.

Answer 9

If you can, talk to your Human Resources person. They can interpret that for you.