This post was contributed by Shelagh Burrowes, Associate, Norton Rose Fulbright Canada LLP (Calgary)
Restrictions placed on former employees by way of restrictive covenants, such as non-solicitation and non-competition agreements, may be imposed only if there is a genuine need to protect the employer’s interests and will be subject to close judicial scrutiny. Whether
Restrictive covenants imposed on employees in the People’s Republic of China (PRC) are normally in the form of non-compete and non-solicitation obligations. PRC law sets out some general principles on non-compete obligations but is silent on non-solicitation obligations which are therefore generally subject to the mutual agreement of the parties concerned.
As a general principle
In Colombia as in many other Latin-American countries, non competence clauses are enforceable for the duration of the employment contract. This means that the restriction will disappear once the labor relationship is terminated.
The fact is that according to Article 26 of the Labour Code, parties in a labor relationship are allowed to agree
Under Article 20 of the Regulations to the abrogated Organic Labor Law (which is still in force as long as its rules do not contravene the New Labor Law), the enforcement of non-compete provisions is limited.
Such Article expressly provides that during the employment relationship, the employee shall refrain from carrying out negotiations on her/his
When it comes to non-compete clauses, the Civil Code of Quebec clearly sets out the required elements:
2089. The parties may stipulate in writing and in express terms that, even after the termination of the contract, the employee may neither compete with his employer nor participate in any capacity whatsoever in an enterprise which would
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:
During the course of their employment relationship, employees are prohibited from competing with their employer and from soliciting other employees and/or customers; this applies even if there is no express provision in the employment agreement.
With regard to a post contractual non-compete covenant agreed before the employment’s termination there are several restrictions which have
In the UK the rules governing the common law doctrine of the restraint of trade have been established through case law. A restrictive covenant in an employment contract will only be enforceable by the English courts if:
(a) it can be shown that the inclusion of the restriction protects a legitimate business interest; and
(b)
This post was contributed by Marie Kwok, Of Counsel, and Rebecca Hui, Associate, at Norton Rose Hong Kong
Under Hong Kong law, restrictive covenants (e.g. non-compete and non-solicitation clauses) are prima facie unenforceable as they are restraints of trade and against public policy. However, the Courts have upheld certain restrictive covenants provided that