This clause stops you from recruiting or hiring employees from your former company after you leave. For example, you cannot call up your former colleagues and ask them to join you at a new job. This is considered a relatively reasonable restriction because it protects the company's investment in training and team stability, and it does not stop you from working in your field—only from taking specific people with you. Courts in both the UK and US generally enforce these clauses if they are limited in time (usually 1-2 years) because they serve a legitimate business purpose without completely blocking your career. However, some jurisdictions treat blanket non-poaching clauses with suspicion if they prevent you from hiring anyone who ever worked there.
This is a lower-risk clause, so you may accept it more easily than others. However, negotiate the time limit to one year or less, and make sure it only applies to employees you directly managed or worked closely with—not every single person in the company. Clarify that you can hire people who apply to you on their own initiative; the restriction should only prevent you from actively recruiting them. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause stops you from recruiting or hiring employees from your former company after you leave.
Why should I care about this clause?
For example, you cannot call up your former colleagues and ask them to join you at a new job.
What are my options?
This is considered a relatively reasonable restriction because it protects the company's investment in training and team stability, and it does not stop you from working in your field—only from taking specific people with you.
How does this affect small businesses?
Courts in both the UK and US generally enforce these clauses if they are limited in time (usually 1-2 years) because they serve a legitimate business purpose without completely blocking your career.