Startup founders, CEOs, HR professionals, and legal teams in Ireland hiring senior employees or drafting contracts.
Readers will gain practical insights on creating enforceable restrictions, avoiding common pitfalls with templates, and using alternatives like garden leave to safeguard business interests effectively.
Key Takeaways
Non-compete clauses are void unless protecting legitimate interests like confidential info or client relationships, and reasonable in duration, geography, and scope.
Durations of 6-12 months, local geography, and role-specific scopes increase enforceability chances.
Non-solicitation clauses for specific staff or clients are generally easier to enforce if limited and targeted.
Garden leave provides reliable protection during notice periods as employees remain paid and bound by duties.
Courts strike down overly broad clauses entirely without rewriting; tailor contracts specifically to roles.
Laura Ryan is a practising Barrister at the Bar of Ireland. She graduated from the Honourable Society of King’s Inns in 2024, having previously qualified and practised as a Chartered Accountant in a big four accounting firm.
What is the difference between non-compete, non-solicit, and non-dealing clauses?
Non-compete clauses stop former employees from working for competitors or starting competing businesses. Non-solicitation clauses prevent approaching clients or staff. Non-dealing clauses prohibit any contact with specific clients, even if initiated by the client. These distinctions matter as courts evaluate each differently under Irish law.
Why do Irish courts strike down non-compete clauses?
Irish law presumes restraint of trade clauses void unless they protect a legitimate interest and are no more than reasonably necessary. Most fail the reasonableness test, like broad restrictions preventing work across Europe for years, even if agreed willingly. Courts reject unreasonable restraints regardless of contract terms.
What makes a non-compete clause enforceable?
Courts assess duration (6-12 months ideal for seniors), geography (limited to employee's actual area), and scope (tailored to role and protectable interests). Shorter, narrower clauses matching the employee's activities and business needs are more likely to survive scrutiny.
What counts as a legitimate business interest?
Irish courts protect confidential information like trade secrets and pricing, and stable customer/supplier relationships where the employee was key contact. General skills or experience gained, even through training, cannot be restricted.
Is garden leave more reliable than a non-compete?
Garden leave keeps employees paid during notice while at home, maintaining duties of confidentiality without competing. Courts favor it as the employee is compensated, making it more defensible, especially combined with shorter non-competes for seniors.
