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subject to non-compete contract

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1 subject to non-compete contract on Tue Jan 17, 2017 10:02 pm

fruitninja


Arresto Menor
Hi, I have question in line with my employment contract.

I work on an outsourcing company (companyA) that basically hire employees to individually work with their clients (client1). It's simply put as client1 hired companyA to hire someone to work for them - so client1 is paying companyA with a cut to pay my salary.

Unfortunately, client1 that I handled before ended their contract to companyA because they faced a problem with their supplier and so, they cannot afford to spend more money.

Now, client1 already fixed their problem and went back to business. I'm still working with companyA for another client (client2). But since client1 liked how I work, they want to get me back on their business - even offered me to just work with them after my working hours with companyA for client2, so I won't be working on both clients at the same hours.

The problem... companyA said I can't work for client1 because I will be breaching the non compete on my contract with them.

Is there any possible way I can accept clien1's offer while working for companyA? Because I was thinking, if client1 is already not on a contract with them, why are they going to sue me? In the first place, working for client1 will be done in my personal time, out of my working hours with companyA for client2.

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2 Re: subject to non-compete contract on Tue Jan 17, 2017 11:32 pm

lukekyle


Reclusion Perpetua
unfortunately if your employment contract has a non compete clause you cant work for client 1. even if you resign there is usually a "cooling off" period

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3 Re: subject to non-compete contract on Wed Jan 18, 2017 6:11 am

fruitninja


Arresto Menor
even if client1 is not a direct competitor?

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4 Re: subject to non-compete contract on Wed Jan 18, 2017 8:10 am

lukekyle


Reclusion Perpetua
Look at the wording of your contract, it will probably state that the non compete clause refers to clients/ former clients. That clause is usually written to prevent former clients from poaching the company's staff.

Furthermore even if it does not effect the non compete clause it may be considered conflict of interest bec client1 is a former client of your employer.

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5 Re: subject to non-compete contract on Thu Jan 19, 2017 7:31 am

fruitninja


Arresto Menor
I see. So if ever client1 wants to employ me again, they should talk to companyA and make a new contract to employ me under client1?

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6 Re: subject to non-compete contract on Thu Jan 19, 2017 8:11 am

lukekyle


Reclusion Perpetua
yes that would be the best scenario

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7 Re: subject to non-compete contract on Thu Jan 19, 2017 11:11 am

fruitninja


Arresto Menor
Alright. Thank you sir. I'll just let them know this.

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