This clause stops you from hiring or recruiting employees from your current employer (or business partner) for a set period after you leave or the contract ends. It exists because employers invest time and money training staff, and they want to protect that investment. Courts in both the UK and US will enforce this if the time period is "reasonable"—typically 6 months to 2 years depending on the job level. For example, if you're a manager at a tech company and sign this clause, you cannot call your team members to join you at a competitor for the restricted period. The legal principle is that employers have a legitimate business interest in keeping their trained workforce intact.
Negotiate the time period down to the shortest possible—aim for 6 months rather than 2 years if you can. Also try to narrow it to senior staff only, not all employees, since courts are more likely to enforce reasonable restrictions. If you think you'll want to hire specific people later, name exceptions in writing now rather than hoping the clause won't apply. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause stops you from hiring or recruiting employees from your current employer (or business partner) for a set period after you leave or the contract ends.
Why should I care about this clause?
It exists because employers invest time and money training staff, and they want to protect that investment.
What are my options?
Courts in both the UK and US will enforce this if the time period is "reasonable"—typically 6 months to 2 years depending on the job level.
How does this affect small businesses?
For example, if you're a manager at a tech company and sign this clause, you cannot call your team members to join you at a competitor for the restricted period.