Contract Clause.
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- 5timuli
Be employed by or go into business in any field which is in direct competition with [COMPANY], including starting Employee's own company which would act as a competitor of [COMPANY], either during the employment hereunder or for a period of two (2) years following the termination of such employment, notwithstanding the cause or reason for termination.
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Is this a standard contract clause?
Surely it doesn't mean I can't work for another agency or freelance in the area for two years after I leave?
- anxiousarms0
that certainly is what it sounds like. but that can't be right.
- boobs0
That's what's called the "Insanity Clause." Because you'd be crazy to agree to that.
- ifeltdave0
Is this contract to keep you at an agency for X number of years? If so, is this in reference to early termination of the contract? I've seen things like this before, but to just put a 2 year limit even if your time there is done and you leave on good terms is a bit crazy.
Though, lots of places will not adhere to these types of clauses, assuming your bosses and co-workers aren't extreme pricks of course.
- marchelo0
its usually one year... and it should be any clients that you have worked for under said company...basically if you quit or are fired, its saying you wont be able to work freelance etc for these contacts that you made while working there... Or so is what I understand from this.
- 5timuli0
It seems a bit excessive to me. I'm going to question it, just wanted to see what others think of it.
- 5timuli0
The section is called 'Restrictive Covenants' and it's in three parts. Part (a) is keep away from the clients, part (c) is don't steal staff, and then tere's this one, part (b). I've never seen it before.
- d_rek0
I signed something similar when I joined the studio I work for - however the period was for 180 days and not (2) years. My understanding from the principals of the company that I work for was this - basically don't leave to work for a company that is going to take away business from the company you just got done working for AND don't leave, start freelancing and take your clients apple pie away from the company. At it's essence it means: Don't take the business we have away from us.
- VectorMasked0
My contract had that clause.
2yrs too, and as far as I remember I could not even work in the area.
*refused to sign in. bosses did not insist.
Kinda get the feeling they all grab those contract from 40-dollar books on design contracts.
- VectorMasked0
btw... I only clicked on this thread coz without thinkg I thought it was about Santa Clause
*dumbass
- slappy0
I had one in my contract but crossed it out before settling the contract.
- silentseven0
Make sure where you live they non competes are legal. In LA they aren't.
- All of California I meant.silentseven
- Even then if there is no monetary value placed on the signing of that contract its not valid.silentseven
- Soler0
pretty standard. all ad agencies have this to keep people from stealing their clients. if you work for a competing agency, its fine. they wont keep you from working.
- silentseven0
This isn't talking about stealing clients its about working for a competitor.
- VectorMasked0
I always thought the opposite.
It's more damaging for them to steal clients than to work in a place a mile away from their office.Most of the good agencies where I live are located in only 2 of the busiest and trendy areas of the city.
This would mean I'd have to commute for 45 minutes towards the outskirts of the city as there I might find some decent jobs. This would blow.
- silentseven0
You don't have to sign it.. I mean what are you going to do - go work for a competitor. I mean come on and if they are that litigious then you don't want to work there anyways
- Point50
I ripped that page out of my hire packet/contract, then turned in everything else (like the insurance forms and direct deposit). The next day the lady in HR emailed me to tell me that my non-compete wasn't in the packet and that I'd need to fill out a new one. I walked down to her office and let her know that I would not be filling that out and to let the "bosses" know that. She did, and they said "that's fine" and that it "didn't apply to me". Meanwhile, a shitload of other people I know just signed it like it was the thing to do, no questions asked.
- rafalski0
I signed one once, but it wasn't valid. They cannot prevent you from getting any sort of employment after you've finished with them. Nanny state watches our silly asses here and such contract wouldn't be legal.