View source

[[ECQC|Link back to main ECQC page.]]

= Overview =
The restriction of employees accepting subsequent positions with competing companies.


[Brian Reynolds]
Non-compete agreements (and related but less intrusive: non-hire agreements) which extend beyond the employment period lower developer quality of life by reducing future employment opportunities. This lowers the employee's future negotiating power with the employer by reducing their potential to change employers, often unfairly. In the worst cases, employees are unable to change jobs without relocating from the area, or are even forced to leave the industry entirely.

Some agreements in this area are clearly "fair". For example an agreement not to compete during the period of employment is almost a necessity of doing business in most cases; and agreements not to hire from the employer for a reasonable period of time after employment while a negative for the employee (and in my view a bit slimy on the part of the employer) are nonetheless much less onerous in their effect on quality of life. 

Since our role here is primarily to watch out for the interests of the employee (developer) who usually has inherently less negotiating power than the employer, we should use the certification program to discourage post-employement non-compete agreements as strongly as possible and discourage (to a lesser level) post-employent non-hire agreements. Conversely we should be trying to reward employers who offer less onerous provisions in this area, as they are allowing employees greater employment and entrepreneurial opportunities for career advancement.

= Specific Issues =

[Brian Reynolds]

In a "tiered" accreditation system my first suggestions in this area would be:

* Non-compete/Non-hire DURING employment: allowed in all tiers
* Non-hire AFTER employment: allowed at basic tier with restriction of time limit (e.g. one year); not allowed at premium tier.
* Non-compete AFTER employment: not allowed at any tier.

Exception: if employee was a former principal in the company whose shares have been purchased in an acquisition, an entirely different standard applies. Both non-compete and non-hire agreements reasonably limited in time should be allowed for employees who formerly held a certain minimum percentage of the company (5%? 10%?)

= Sample Contract Boilerplate Text =