Non-compete clauses are an essential pre-emptive measure contained in most professional service contracts such as those between a dental practice and associate or partner. At Nath Solicitors we specialise in drafting effective clauses to restrict what a dentist can do once he or she leaves a practice.
IS THE CLAUSE REASONABLE?
Provisions that restrict post-employment activity offer invaluable protection. For example, they can prevent an associate from setting up a practice for example next door, and taking patients of the practice with him or her.
But they must be executed correctly. .The main issue to consider is whether the provisions are considered reasonable, and whether a court would consider such provisions to be reasonable. Otherwise they will not be enforceable.
When preparing such provisions, there are a number of factors to consider, including:
- Be specific about the activities you wish to restrict
- How long will the provisions be in effect for
- What geographical radius will restrictions apply to?
Given, that reasonableness is the measuring stick for whether the provisions are enforceable or not, you must take account of your specific circumstances. For example if most of your patients live within a mile of the dental practice, preventing the associate from working within 5 miles of the practice may not be reasonable.
Restrictive clauses are all about protecting the goodwill of your business – your biggest asset. It makes sense to seek specialist legal advice before introducing this type of clause to your employment contracts.
Speak to one of our solicitors today for expert advice on 0203 670 5540 or contact us online.