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Non-Solicitation Clause
A non-solicitation clause is a contractual provision in an employment contract that prohibits the employee from establishing business contacts with the employer’s relations after termination of the employment relationship.
A non-solicitation clause, also referred to as a non-solicit provision, restricts an employee from approaching the employer’s customers, suppliers or other business relations for a specified period following termination of employment. The clause is intended to safeguard the employer’s goodwill and customer base.
It is relevant in that it prevents a departing employee from transferring such relationships to a competitor or to their own business. In practice, it is frequently combined with a non-compete clause and must be in writing, specific and reasonable in scope in order to be enforceable.
Courts may moderate or set aside an overly broad non-solicitation clause where it disproportionately limits the employee’s ability to pursue employment elsewhere.
“The employment agreement contained a non-solicitation clause prohibiting the employee from contacting the company's clients for a period of two years.”
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