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Non-solicitation Clause

/nɒn-səˌlɪsɪˈteɪʃən klɔːz/

A non-solicitation clause is a contractual restriction that prevents someone from actively recruiting employees, contractors, or customers away from a business for a specified period after their relationship with that business ends.

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How does a non-solicitation clause actually work?

A non-solicitation clause creates a legal obligation not to actively approach or entice specific people - usually staff members or clients - to leave the company or stop doing business with it.

It typically activates when you leave the company, sell your shares, or end your working relationship.

The restriction usually lasts between 6 to 24 months, though this varies based on what's considered reasonable.

What's the difference between a non-solicitation clause and a non-compete clause?

A non-solicitation clause only stops you from actively recruiting people or clients away from the business - you can still work in the same industry and compete generally.

A non-compete clause is broader and more restrictive, preventing you from working in the same sector or geographic area entirely.

Non-solicitation clauses are generally more enforceable because they're seen as more reasonable restrictions.

Can a non-solicitation clause prevent former employees from contacting me?

No, a non-solicitation clause doesn't stop people from approaching you of their own accord.

The restriction is on your active solicitation - meaning you can't reach out and encourage them to leave or switch suppliers.

If a former colleague contacts you independently about opportunities, that's typically not considered a breach.

Where would I first see a
Non-solicitation Clause?

You'll most likely encounter a "non-solicitation clause" when signing an employment contract, shareholder agreement, or when selling your business - it's the bit that stops you from poaching employees or pinching clients after you leave.

How long does a non-solicitation clause typically last?

Non-solicitation clauses usually run for 6 to 12 months after departure, though some extend to 24 months.

The duration needs to be reasonable to be enforceable - courts won't uphold restrictions that are excessive or unnecessarily harsh.

Generally, longer periods are harder to justify unless there's a genuine business reason.

What happens if I breach a non-solicitation clause?

Breaching a non-solicitation clause can result in the company seeking an injunction to stop you, plus claiming financial damages for any losses they've suffered.

The company would need to prove you actively solicited people rather than them approaching you naturally.

Enforcement depends heavily on how reasonable and clearly written the clause is in the first place.

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