Non Compete Clauses in Irish Contracts of Employment - YouTube

Channel: Terry Gorry Solicitor

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this video I'm going to take a look at non-compete clauses in contracts of
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employment so if you're an employer or indeed an employee or a former employee
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then you might want to have a look at the video just to be sure about how
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effective and how enforceable such non-compete clauses are so let's take a
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look common lower rates an employer has a common law right to protect trade
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secrets and confidential information so that arises from just a common law it
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doesn't have to be in the contract of employment it's not in statute per se
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but there is a common law right also an employer has a right to expect that the
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employee will not compete with him the employer while the employee is employed
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with them the definition down of trade secrets and confidential information can
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cause problems and this will depend on the particular circumstances of the case
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clearly a lot of times disputes will rise to the employer will say that trade
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secrets or that's confidential information the employee may well turn
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around and say look everybody knows this this is not a trade secret or whatever
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the as I say there's no common law protection though preventing a former
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employee from solicit soliciting business from former employer and this
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needs them to be provided for in the contract of employment that leaders
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aren't enter restrictive covenants restrictive covenants in a contract of
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employment are essentially non-compete clauses question I'm often asked is how
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enforce what are effective early well when you look at the whole situation in
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their own there is a balance is struck between restraint of trade on the one
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hand the constitutional right of the under constitutional right of an
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employee's we are in a living and the legitimate protection of a genuine
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interest of the employer sort of competing demands competing rights to be
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balanced out there in any dispute situation that ultimately is what will
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happen if there's a dispute the employee will simply plow ahead and commenced
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business the employer will seek to enforce his non-compete clause is
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restrictive covenant and a court ultimately then will be faced with the
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prospect of deciding between these two competing interests any restrictive
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covenant any non-compete clause must be reasonable and it must be reasonable as
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to the length of time and the geographical area that start to be
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covered time six months is reasonable I think above six months is questionable
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but you might tell where were six to 12 months however the likes of two years 18
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months or longer and would be hard I believe to enforce as being necessary
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and reasonable the geographical area must be reasonable also not an entire
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country for example now it is possible that you might be able to enforce one in
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relation to an entire country in particular circumstances but by and
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large employees when they leave the job are entitled to earn a living the
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Constitution right here in a living and therefore the geographical restriction
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must be reasonable if the employer is in breach of contract then he will not be
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able to rely on any restrictive covenant a further spanner in the works then
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comes from the Competition Act of nineteen ninety-one this act section 4
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subsection 1 articulate prevents anti-competitive agreements between
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undertakings now when employee wiley's employed is not an undertaking however
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when the employee leaves the job and sets up in competition with the old
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employer he's likely to be considered an undertaking and to be covered therefore
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by the Competition Act of nineteen ninety-one therefore any agreement
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between the former employer and the former employee not to compete could
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actually be in breach of the competition act it's anti-competitive that's what
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the employee clearly would be arguing if he
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wants to commence the leading case here is the apex fire protection version
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smarter it's a nineteen ninety three cases to do I think would fire fire
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extinguishers under supplier of fire extinguishers and fire protection
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equipment and so on two-year time restraint in this particular case with
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healthy be excesses one year you might get away with Portia two-year restraint
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definitely worth successes my name is teri garr iam a solution n feelin County
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means there's my contact details there on the screen I hope you find this video
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useful