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Ask the Expert – May 2016

Ask an Expert

Q: Prudence, I’m in a bit of an odd situation, I have a non-compete, but the company that  I work for is up for sale to one of our main competitors. Does that nullify the non-compete if I was to leave? I have NO desire to work for this new company and I know that this place is going downhill the minute the ink is dry. Thanks, Joey

A: Hi Joey, This doesn’t happen very often, but you’ve completely stumped me. My gut says that the non-compete would stand unless it’s expressly written in the contract that under these circumstances it would be void. Over the years there have been incentives in place when this happens to retain the employees of the acquired company and I often see an additional retention contract put in place, but rather than speculate, I’d suggest you make a call to an employment lawyer to get their legal expert advice. I’d be very curious to hear what the outcome is, please keep me posted and hang in there! Thanks, Prudence


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