This archive report was first published on 24 August 2020.
On August 24, 2020, Cathy Mputhia wrote about the importance of non-competition clauses in employment contracts.
When hiring staff, especially in the innovation and creative sectors, a non-competition clause can be a valuable tool to protect your business from poaching by former employees.
As an employer, it's natural to feel frustrated when a staff member leaves and takes valuable knowledge or skills with them, especially if they're working for a competitor.
However, it's essential to understand that employees have the right to change jobs and work for competitors, as long as they're not breaching their contractual obligations.
That being said, a non-competition clause can provide a level of protection for your business. This clause prevents employees from working for competitors for a specified period, usually after they've left your employment.
But how effective is a non-competition clause, and what are the circumstances under which you can take action against a former employee?
According to Mputhia, you may have a recourse if there's a contractual basis, an infringement of intellectual property, or if it constitutes unfair trade practices.
For example, if your competitor colludes with your staff to undermine you, you may have a case against them.
It's also essential to carefully draft employment contracts, taking into account unique circumstances, to ensure that you have a solid foundation for any potential claims.
One such case, where an employer successfully obtained a temporary injunction stopping a former staff member from working for a competitor, highlights the importance of non-competition clauses in Kenya.
Ultimately, prevention is better than cure, and thoroughly drafting your employment contracts can secure your rights as an employer.
