can a company legally enforce a condition in my contract, stating that I cant start my own company for a year?

Answer 1

yes they can, it also it done quite alot, go and seek legal advice,if you are in the UK contact acas,they are amazing,keep safe all the best.




www.acas.co.uk

Answer 2

If you have a non-competition clause in your contract, this is enforceable if the idea is to set up a company which is in competition with your present employers and is in the same area. If you were to come up with an idea for a company which was active in some completely different sphere of activity and did not pose any threat to your former employers, then this would be a different matter entirely. Normally a clause of this kind specifies the type of business which would be prohibited and the geographical area over which it would apply.

Answer 3

Yes, but it depends on the clause in your contract. Basically if the clause only protects the company's clients or it's area of operations it will be enforceable. Obviously if the company is a multinational, it's area of operations will be wider than that of the local firms. You should seek legal advice immediately, taking with you your contract.There are circumstances where such a clause is unenforceable, but you need legal advice on your own particular contract.

Answer 4

If the contract is enforcable in English Law, the company can require you to not set up your own company in competition with them. If you started your own company and the nature of the business was completely different I can't see a problem with it.

Most employers would reasonably want to terminate your contract if you set up in direct competition with them, though apart from dismissing you I don't see how they could sue for breach of contract. Clauses like this are often unenforcable in a court. You are free to work where you like, for whoever you like. Just don't expect to keep the job.

Answer 5

What is contained in your contract is what is known as a "restrictive convenant". Companies use them to prevent competition from people who have learnt the inside details of a buiness and how it may operate. It's simply a way of protecting their own self interest.

Under English law such clauses are invalid UNLESS show to pass the test of "reasonableness". This is depending on a number of factors and there are no hard and fast rules although case law does give guidance on matters.

A year in the cirumstances would not seem a unreasonable restriction but this depends on the type of employment and many other things. If it was taken to court the employer would have to show it's a reasonable clause - not for you to prove otherwise.

If you are in the UK such clauses may fall fowl of the competition legislation brough in by the EEC as clauses which prevent legitimate competition are allowing monopolistic and so-called "concerted" practices to arise. This is seen as bad for the consumer as it prevents other players from entering the market.

If you did start up in competition this would constitute a breach of contract with your employee. The remedies would be:

1. To sue for damages;
2. A court injunction/damages to prevent the business to operate. e.g. "close down in 1 week" etc.

What happens a lot of the time is that such clauses are not valid. However, due to the fact they are hardly ever challenged allows many employers to incorporate them in a contract without their legal validity ever been tested.

Answer 6

it is called a non-compete clause and is common in many employment contracts, now just because it is a common clause does it mean the court will blindly enforce the provision

the court looks to many factors to determine if they will enforce a non-complete clause, like livelihood of work, scope of the non-compete, and length

remember if you leave and start up your own company they will have to go to court and get an injunction for you to stop

Answer 7

Without looking at the contract, it's hard to give a definite response, however, these types of clauses are enforceable.

Answer 8

They can as long as you signed the contract. It's just a matter of if you are trying to compete with them or not. If you take inside information that you learned by working for them, and start a company that competes with them, expect a law suit.

If you are not, then they won't mess with you.

Answer 9

"work begins today in Montgomery County, Maryland, where a work crew is starting on a project to resurface Maryland State Highway 650 -- a very busy road that has not been fully repaired in 17 years."" Note: Maryland is a Democrat state and it took 17 years for a road to get repaired.

Answer 10

Yes, it has to do with non-compete clauses and trade secrets. Definitely enforceable. I used to work for an intellectual property/patent attorney.

Answer 11

coragryph was correct except for California where the appeals court has determined that a non-compete signed and enforced in the state is void on it's face.