Understanding Non Compete Clauses

Summary

Non-compete clauses are designed to limit your ability to work with former clients or in similar businesses within a certain area and timeframe after leaving a job. In New Zealand, these clauses are enforceable if they are reasonable and protect legitimate business interests. If you have concerns about the enforceability or fairness of such a clause, consider consulting with a legal professional. To request a companys remuneration review policy, you can formally contact the HR department, asking for details on how reviews are conducted, criteria used, and their frequency.

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*.* Providing we do not terminate this agreement without just cause, you will not for three months beginning after termination of this agreement (for whatever reason): (a) Personally provide or offer to provide or arrange Similar Services to or for any Client with whom you have at any time during the six months preceding such termination had dealings; or (b) Within * kilometres of the Layer3 Office become or remain personally engaged, concerned or interested either directly or indirectly and whether as principle, employee, agent, consultant, director or shareholder (other than shareholder in a public listed company) in an enterprise which provides Similar Services except
This clause appears to be a non-compete agreement. It restricts you from:
- Providing or arranging similar services for clients you dealt with in the past 6 months for 3 months after termination.
- Engaging in similar services within * kilometers of Layer3 Office for 3 months after termination.
Do you have concerns about the enforceability of this clause?
my name is Dan
Hi Dan! Thanks for clarifying. It looks like you're dealing with a non-compete clause. Here's some general information:
- Non-compete clauses are enforceable in New Zealand if they are reasonable in scope and duration.
- They must protect legitimate business interests.
- Courts will consider if the restrictions are necessary and fair.
Do you have specific concerns about this non-compete clause?
can you explain this to me?
Hi Dan! Sure, I can help explain this.
The clause you've shared is a non-compete agreement. It aims to restrict your activities after your employment or contract ends. Here are the key points:
- Duration: For 3 months after termination.
- Restrictions:
- You can't provide similar services to clients you worked with in the last 6 months.
- You can't engage in similar services within * kilometers of Layer3 Office.
Do you have any specific concerns or questions about this clause?
*.* Providing we do not terminate this agreement without just cause, you will not for three months beginning after termination of this agreement (for whatever reason): (a) Personally provide or offer to provide or arrange Similar Services to or for any Client with whom you have at any time during the six months preceding such termination had dealings; or (b) Within * kilometres of the Layer3 Office become or remain personally engaged, concerned or interested either directly or indirectly and whether as principle, employee, agent, consultant, director or shareholder (other than shareholder in a public listed company) in an enterprise which provides Similar Services except
Hi Dan, this clause is essentially restricting your activities after leaving a job. Here's a simpler breakdown:
- For 3 months after leaving, you can't:
- Work with clients you interacted with in the last 6 months.
- Work within * km of the Layer3 Office in a similar business.
Do you feel this restriction is unreasonable or are you planning to work in a similar field soon?
how do I ask for a companies remuneration review policy
Hi Dan! To request a company's remuneration review policy, you can send a formal email or letter to your HR department. Here's a sample template you can use:
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Subject: Request for Remuneration Review Policy
Dear [HR Manager's Name],
I hope this message finds you well. I am writing to kindly request information regarding the company's remuneration review policy. Understanding this policy is important to me as it directly impacts my financial planning and career progression.
Could you please provide details on how remuneration reviews are conducted, the criteria considered, and the frequency of these reviews?
Thank you for your assistance.
Best regards,
Dan
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Does this help with your request?