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May 08, 2017

Restrictive Covenants: What Did I Agree To?!


 When it comes to restrictions in an employment agreement, it is important for employees to do their due diligence and for employers to stay realistic.  



Imagine that you have been the loyal and dedicated employee of the same employer for many years. After receiving a lucrative job offer from another company, you are able to make arrangements to part ways with your current employer amicably. Several months later, a client of your former employer approaches you and tells you that they are no longer happy with the services provided by your former employer and want to move their business over to you. The only problem is: you’re still bound by a non-solicitation clause which formed part of your employment agreement with your previous employer. Are you prohibited from taking on the client?

This is one iteration of a relatively common scenario that many employees face following the conclusion of their employment. Even when these employees have signed and agreed to these restrictions within their employment agreement, confidentiality agreement or other document, they are often still surprised to learn that their obligations to their previous employer do not simply end at the conclusion of the relationship. Often, employees agree to these terms at the start of their employment relationship without considering the impact they will have on their ability to find replacement employment down the road.



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Spotted by : Louise Burden
Written by : Brittany Taylor/ Rudner MacDonald
Posted on: April 21, 2017

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