What is the difference between non-competition and non-solicitation clauses ?
A non-competition clause prevents an employee from competing with the employer after the employment is terminated. This means that when the employee’s employment comes to an end, he or she cannot take a job at a business which is in direct competition with the Employer. A non-solicitation clause prevents an employee from encouraging colleagues or contractors to leave the employer and join with the leaving employee in a new venture or that employee’s new employers. Both a non-competition and non-solicitation clause are forms of employment restrictive covenant. There have been many court disputes as to whether such clauses are enforceable, and the position is that each clause is considered by the Tribunal or court on it’s own merits, but the written contract is not conclusive and can be interfered with and/or overturned by the Tribunal or court.
