A post-contract non-compete clause should protect a genuine business interest without imposing an unclear or excessive restriction. Its practical value depends on scope, duration, compensation and enforceability.
- The company should identify the legitimate business interest that needs protection.
- Duration, activities, territory and compensation should be clear and proportionate.
- Exit negotiations should address whether the restriction continues and on what terms.
A genuine business interest
The clause should respond to a specific risk, such as access to strategy, clients, confidential information or commercially sensitive processes. It should not be used as a generic restraint for every role.
The contract should make the protected interest understandable without revealing more confidential detail than necessary. Actual duties and access will also matter.
Scope, duration and compensation
Activities, market, territory and restricted period should be sufficiently precise. A clause that extends beyond the role or the company’s real activity may be difficult to apply.
Compensation must be meaningful and identifiable. Its amount, payment method and treatment during and after employment should be reviewed alongside salary and bonus provisions.
Breach and proportional remedies
The agreement may regulate repayment, damages or contractual penalties, but consequences should be drafted carefully and assessed against the actual breach.
Evidence of competing activity, the information used and the resulting loss can become contentious. Both parties should avoid assumptions and preserve relevant documents lawfully.
The clause at exit
An exit agreement should state whether the restriction remains in force, whether compensation is outstanding and how confidentiality and non-solicitation obligations interact with it.
Where the business no longer needs the restriction, a negotiated release may provide certainty. Where it remains essential, the final documents should remove ambiguity about its operation.
General information. General information only. Enforceability depends on the wording, compensation, role, business interest and facts of the particular case.