RE: How common are NCA's?

From: Martin Dion (martin.dionat_private)
Date: Sun Aug 05 2001 - 17:55:07 PDT

  • Next message: Gabe Kostolny: "Re: How common are NCA's?"

    Good evening,
    
    As an employer in that particular niche, I also do ask employee to sign
    those NCA clause.  The most important thing with NCA is the definition of
    the domain where the consultancy firm evolve and in which context you will
    be providing services to this firm so the protected area of business is
    clear to everybody.
    
    For example, if I train a guy on firewalls, I found it normal that for a
    formal period of one year he wont be able to work for one of my competitor,
    but I wont block him to work for a university as a firewall administrator.
    Another clause will protect me for the cost that came from that training.
    
    There is one area that I still have hard time to believe in that an NCA
    apply, even for our firm, it is when I hire somebody for a specific
    assignment based on his current competency.  Still, we have so much
    proprietary information about our client that I strongly think that it will
    provide a distinctive advantage to a competitor to hire that guy once he
    have work for us so I have no choice but to make the NCA part of the
    contract.  I dont believe that non-disclosure are well respected so blocking
    someone from working for a competitor for a year is a good way to block
    information disclosure to those people I need to protect my firm from.
    
    I personnally think that most of my competitor as I do make those clause
    standard within hiring contract.  Wheither it is legal or not depends on the
    jurisdiction where you provide the service.  One generally accepted
    principle in court altough is that no hiring contract can prevent you from
    working in your domain of expertise.
    
    Martin Dion
    Vice-President
    Technology and Security Services
    
    Above Technology
    Phone: (450) 430-8166
    Cell: (514) 831-5427
    Email: martin.dionat_private <mailto:martin.dionat_private>
    
    
    
    -----Message d'origine-----
    De : John Starta [mailto:johnat_private]
    Envoye : Saturday, August 04, 2001 1:58 PM
    A : securityjobsat_private
    Objet : How common are NCA's?
    
    
    I have been offered a position with a professional service company that is
    asking that I sign a non-compete agreement. Having spent the majority of my
    career in large enterprise environments non-compete agreements are new to
    me. This particular agreement seems particularly restrictive ... to the
    point that I wonder whether I could legally find employment should we ever
    part ways. I have included a couple excerpts below for reference. Is this a
    common place in the professional services arena?
    
    jas
    
    >1. For a period of one (1) year commencing with the termination, for
    >whatever reason, of my employment with the Company, Employee will not
    >solicit, assist in the solicitation or accept professional services
    >similar to those provided by the Company from a business entity for whom
    >either the Company or Employee has performed services within the last year
    >of Employee's employment with the Company.  If, within one year commencing
    >with the termination of Employee's employment of the company, Employee
    >does solicit, assist in the solicitation or accept professional services
    >similar to those provided by the Company with a business entity with whom
    >either the Company or the Employee has performed professional services
    >within the last year, employee agrees to compensate the Company, 50% of
    >the revenue generated from that business entity for a period of one year,
    >based on customer invoices.   Payment of this amount will be due to the
    >Company on a monthly basis 30 days after Consulting services are rendered.
    >
    >2.  Further, Employee agrees that during the period of Employee's
    >employment and for one (1) year after termination of employment, for
    >whatever reason, Employee will not solicit and/or assist in the
    >solicitation of any employees of the Company to leave the Company's
    >employ.    If Employee does solicit employees of the Company during
    >Employee's period of employment or one year thereafter, Employee agrees to
    >compensate the Company $50,000 to help offset costs to replace
    >employee.  Payment in full is due within three months of hiring solicited
    >employee.
    



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