Non-Compete Clauses In Employment Contracts

Our Associate, Habiba Mokhtar explains the effect of non-compete clauses in employment contracts.

Non-Compete clauses are commonly included in employment contracts or agreements to ensure the protection of an employer's business post-termination of the employment relationship. Due to the employee's access to the business's trade connections (clients, customers, suppliers), trade secrets and confidential information during their employment, should the employee choose to practice the same profession within the market, they will undeniably hold an unfair competitive advantage that may be used to prejudice the previous employer's interests. This agreement seeks to limit the employee's ability to engage in unfair competition by restricting them from starting a competing business, working for a competitor, exploiting their previous employer's confidential business information or the solicitation of their customers and employees for a specified period after termination.