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  1. #1
    Join Date
    Sep 2005
    Location
    Canada
    Posts
    4

    Default Employee terminations and non competition clauses

    Question:

    Generally would a non competition clause in an employee contract remain valid when the employer terminates the employee for lack of available work (ie. employer lost a major contract and had to lay off employee).

    Thanks!

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Non-Competition Clause

    It will depend upon the full facts and circumstances - check with a local lawyer.

    If the former employer is no longer in the line of business to which the noncompete applied, it becomes more likely that a court would release you from the agreement or that the employer would do so voluntarily if asked.

  3. #3
    Join Date
    Sep 2005
    Location
    Canada
    Posts
    4

    Default

    No in this case the employer will remain in business

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