Breach Of Non Compete Agreement

Already in Dyer`s Case in 1414, English Common Law decided not to impose restrictions of competition because of their nature as trade restrictions. [4] This prohibition remained unchanged until 1621, when it became apparent that a restriction limited to a given geographical location constituted an enforceable exception to the previous absolute rule. Nearly a hundred years later, with the turn of 1711 with mitchel v Reynolds,[5] the exception became the rule that created the modern framework for analyzing the applicability of non-competition rules. [6] The legality of your employer denying you a job or firing you depends on the facts of each case and varies from state to state, depending on the laws of each state. It may also depend on the relevance of the proposed pact not to compete. There is also a strong argument that a worker dismissed for refusing to sign an inappropriate non-compete obligation could be entitled to dismissal against the employer in violation of this public policy of the State. The results of these “public policies” vary from state to state. The best thing would be to have no non-competition clause at all. Otherwise, you should try to limit it as much as possible in geographical scope and duration. Narrowly limit it to the area where the employer really cares about you – not the whole industry or industry. For example, you might wonder that the limitation to the clothing retail trade is to work in a clothing store, unlike retail in general, which would cover a very wide range of possible jobs that really have nothing to do with it. The aim is to limit the agreement to what is necessary to protect the employer. You should also consider applying for severance pay in the event of involuntary dismissal.

This is a question of dismissal. Suppose he does – and it says that the non-competition clause is still in effect, even if you are fired – the next question is: is it legal? Here, too, the answer is this: that is what matters. If your dismissal is due to a fault on the part of the employer – discrimination, illegal activity of the employer or similar misconduct – most courts have ruled that a non-competition clause is no longer applicable. The unlawful conduct of the employer was not part of the worker`s expectation at the time of acceptance of the non-competition clause. If the reason for your dismissal is employee misconduct – presence, poor performance or similar problems – then the fact that you were fired probably won`t be as significant.