Employment non-compete obligations and post-termination restrictions are often included in Irish employment contracts. Most significantly, these obligations involve restrictions preventing employees from working for competitors, but they can also include confidentiality obligations and restrictions on the solicitation or any kind of engagement with clients, customers or even other employees of the employer.

Non-compete obligations are considered unduly restrictive, but they can be justified and legally enforceable if they are reasonable on the below grounds:

• Capacity
• Geographical area
• Duration

Courts will weigh the employers right to protect their legitimate business interests against the employee’s right to work and earn a livelihood. These clauses are assessed on a case-by-case basis, depending on the nature of the role and responsibilities, the information the employee had access to, their seniority, the competitive market of the employer, including their competitors and the geographical markets  the employer  and the employee might operate in. Other factors that might impact on post-termination restrictions include garden leave and notice periods.

It is important to always be aware of any post-termination restrictions in an employment  contract and to seek legal advice on the extent and enforceability of the restrictions and obligations.

If you have a query in relation to Non-Compete Obligations or Post-Termination Restrictions, contact our specialist employment law team on 01 644 9900 or mail@danielspring.ie

This information is provided for information purposes only and does not constitute legal advice. Specific legal advice in relation to your situation should always be taken prior to taking any action on foot of this information.