Tag archives: non-compete clause

Restrictive covenants in UK contracts of employment

In the UK, a post termination restrictive covenant will be void for being in restraint of trade unless the employer has a legitimate business interest to protect and the protection sought is no more than is reasonable to protect that interest. The interests which can be protected are clients, staff, and confidential information. One type … Continue reading

The severe sanction applicable to provisions entitling employers to waive a non-compete clause at any time

French law allows an employer to subject an employee to a non-compete obligation after the termination of his/her employment under certain conditions. However, in practice, an employer may realize at the time of the termination that an employee will actually not be in a position to constitute a threat to its interests even if he/she … Continue reading

Are your restraint of trade provisions enforceable in France?

In France the rules governing restraint of trade provisions in the context of an employment relationship have been established through case law. Generally speaking, restrictive covenants in an employment contract will only be considered enforceable by French courts if: it can be shown that the inclusion of the restriction protects a legitimate business interest; and … Continue reading

Non-compete obligation: financial compensation does not vary depending on the type of termination

The law Under French employment law, it is possible for an employer to subject the employee to a non-compete obligation after the termination of his/her employment as long as such obligation is necessary to protect the legitimate interests of the business, is limited in terms of time and geographical scope and takes into account the … Continue reading

Non-compete obligation: the contractual time limit for waiver may not apply in certain circumstances

The legal context It is quite common for employers to include in an employment contract the possibility of unilateral waiver of the application of a non-compete obligation at the end of the employment relationship. French case law does permit such flexibility but only provided that (i) such waiver is expressly stipulated in the employment contract, … Continue reading

Does the creation of a competing company by employees constitute unfair competition ?

The legal background French case law has always considered that both employer and employee are under an implied duty of loyalty which pervades the entire employment relationship. It follows from this general obligation of loyalty that the employee is required to serve his/her employer’s interest. As a result, the employee is subject to the obligation … Continue reading
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