We are looking at including a non-compete clause in future employment contracts. Are we within our legal rights to specify that staff can’t work for clients or competitors for a 6-month period after their employment with us ends?
Yes, you are free to include a restraint clause such as a non-compete clause in your employment agreements.
Sometimes courts are reluctant to fully enforce restraints in employment settings, so it is important to ensure that any restraint is well drafted, tailored to the specific needs of the business, and proportionate and reasonable. A restraint that protects the legitimate interests of the business, i.e. goodwill, customer connection, valued workforce and confidential information, is more likely to be enforceable.