Can we legally prevent a sales team member to take clients when he/she leaves our startup?

Question

We are a startup from France with business over France, UK and US. I would like to ask the question regarding sales team hiring policy. What is the best way to legally prevent a sales associate to take with him/her the clients when he/she leaves our company? Is this possible at all? How should we put this in our contracts? Thank you very much!

Answers: 2 public & 1 private

Steven weinrieb
Patent Attorney

You should insert a non-compete clause in your employment contract - for a specified period of time, after an employee leaves your company, they cannot engage in the same/competitive company, serve the same clients, whatever - it's pretty much standard employment contract law.

8a416533c2
Patent Attorney

I would advice contacting a French lawyer on the topic, but as far as I know French law allows such clauses, provided there is a financial compensation.

I.e. the contract may indicate something like "the company A reserves the right to prevent Mr. X from working with competitors or company's customers for Y months, should the company A decide to exercise this right, a compensation Z will be paid to Mr. X".

As I remember, without the explicit compensation, this clause will not be valid in France. Also, the compensation must be a certain percentage of the salary, i.e. 1€/month won't do.

This is what I remember from my time in France, a local lawyer will certainly advice you more precisely.

Recent questions

Do people really steal invention ideas?

I sometimes see questions on forums like Quora about how to stop people stealing your invention i...

4 5386 2
Is interpretation of known historical facts protectable under copyright law?

I am looking for useful sources on protecting copyright. I am in the process of writing a book ba...

3 6115 2
Fair Use and news feeds

What is the current wisdom on compiling news feeds on a third party website so far as copyright i...

1 3962 0
Looking for good patent firm

How to find a good patent firm to help me apply patent in USA

3 4320 2
What constitutes 'prior disclosure'?

This might be a silly question but I’m a bit confused by ‘prior disclosure’ as it applies to pate...

2 4823 1

Do you have a question about your invention or intellectual property?
Search the questions below or post your enquiry to one of our experts via Directory.
(User questions are no longer posted publicly on this page.)