Retrospective Enforcement of Non-Competition Clauses
Running a business is tough, but it’s even tougher with competition. One of the worst kinds of competition can come from a former employee.
Some employers have tried to limit this risk through the use of what is called a non-competition clause, a provision in an employment agreement that bars a former employee from running a business in competition with their former employer.
The common law has generally disliked the use of non-competition clauses, and as far bas as 1894, the House of Lords stated in Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd,
. . . [more]The public have an