working with two other guys in a small business. Non compete clause

A

arry

Registered User
Messages
47
Hi,

I am working with two other guys in a small business. We have been working a number of years together but now I want to leave (and take two clients). I signed a clause in agreement saying that I would not compete against the company (no mention of clients).

Does anyone know if these are enforceable. I am a architect living in dublin and effectively, any job I take outside of the current company would be competition. Is that not a restraint of trade?

Thanks in advance

Arry
 
Does the clause have a time limit?

It is restraint of trade. Most of those clauses are unenforceable in any event.
 
No time limit - is that good or bad?! It would seem, from what I have read, that open ended clauses like that are not really enforceable?

Thanks
 
There is a difference between just leaving and leaving and taking clients with you.
 
A clause with no defined time limit would be totally unenforceable.
 
Arry
When you signed the original clause, I am sure the other 2 guys signed the same clause, and you all agreed to it at that time.
If 2 clients want to move with you, I expect its because they already have a working relationship with you. (and your 2 friends would be aware of this)
Surely, the best option is to sit down and discuss your plans with your friends.
Why are you assuming they will want to go to law, if its as straightforward as you describe? ( How would you feel if one of the others took 2 clients ?
 
These two clients are our two largest accounts. We have maybe 15 clients, but these two contribute about 50% of turnover.

If I take them it will have a serious impact on the business. Given this I dont think that the news will just be accepted casually.
 
Surely if the clients want to move there is very little that your partners can do about this. Any client can change firm if and when they please. Just because they will be going with you doesn't really change that.
 
I've come across a legal loophole in some of these agreements - may not be in yours, but you might get lucky.

The agreement may contain a clause along the lines of ......"any party to this agreement may terminate it by giving ??? weeks notice...etc."

If you give the notice to terminate the agreement, then all clauses in the agreement, including the no compete clause get terminated.

Agree with staff. Your partners can't force paying clients to stay with them. What client would even want to be 'forced' to stay with a particular firm.
 
whatever about the legalities, is there no moral compunction to stay? ask yourself the question how would you feel if either of your colleagues did what you propose and then think again.
 
i am sure this happens everyday in business breakups. I think the best approach is the hinest approach and have the discussion with your two collegues who you have built up the business with. It there is only the three of you and you set up the bisiness why do you want to leave? Surly its your company also? do you feel your pulling more of the weight for a smaller share of the profit?
 
You must log in or register to reply here.
Back
Top